Refer to the Information Provided in Figure 20

question 245

Multiple Choice

Refer to the information provided in Figure 20.3 below to answer the question(s) that follow. Figure 20.3
-Refer to Figure 20.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. If shoes are a normal good and income in this country falls, then we would expect

• A) the number of pairs of shoes imported into this country to increase.
• B) the number of pairs of shoes imported into this country to decrease.
• C) the number of pairs of shoes exported from this country to increase.
• D) the number of pairs of shoes exported from this country to decrease.

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Definitions:

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.

Perfect Substitute

Goods that can be completely replaced by another with no loss of utility to the consumer, such as different brands of sugar.

Units Of Good

The individual items or quantities of a product that can be quantified, counted, and often sold individually.

Utility Function

A mathematical representation of a consumer's preference system, ranking different bundles of goods and services by their levels of satisfaction.