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There Are Winners and Losers as a Result of Protectionist

question 139

True/False

There are winners and losers as a result of protectionist policies, but economic theory can show that the gains from the winners are larger than the losses of the losers.


Definitions:

Linear Demand

A type of demand relationship where changes in price lead to direct, proportional changes in quantity demanded.

Price Elastic

An assessment of the influence that price changes have on the consumer's purchasing volume of a good.

Inversely Related

A relationship between two variables where one increases as the other decreases.

Total Revenue

The total income generated by a business from the sale of goods and services before any costs or expenses are deducted.

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