In Deriving an Offer Curve for a Country, If a Higher

question 3

Multiple Choice

In deriving an offer curve for a country, if a higher price of exports/price of imports leads to a reduction in the quantity of exports which the country is willing to supply, then, in this range of the offer curve, the offer curve is said to be __________.

• A) inelastic
• B) unit-elastic
• C) elastic
• D) inelastic, unit-elastic, or elastic - cannot be determined without more information