If the Ratio of Price of Cloth (PC)divided by the Price

question 17

Multiple Choice

If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace,then

• A)the cloth exporter will increase the quantity of cloth produced.
• B)the cloth exporter will decrease the quantity of cloth exported.
• C)the food exporter will increase the quantity of food exported.
• D)the cloth exporter will increase the quantity of cloth exported.
• E)the country would import more cloth.

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