Figure 9-18

question 197

Multiple Choice

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.
-Refer to Figure 9-18.If Isoland allows international trade and the world price of peaches is $5,then

• A)producer surplus will be smaller than it would be if Isoland banned trade.
• B)consumer surplus will be smaller than it would be if Isoland banned trade.
• C)the domestic quantity of peaches demanded will exceed the domestic quantity of peaches supplied.
• D)Isoland will be an importer of peaches.

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Definitions:

Just-In-Time

An inventory management strategy that increases efficiency and decreases waste by receiving goods only as they are needed in the production process, reducing inventory costs.

Import Duties

Taxes imposed by a government on goods imported from other countries, meant to protect domestic industries and generate revenue.

Global Procurement

The process of sourcing goods and services from the global market to exploit global efficiencies such as lower cost, enhanced quality, and better supply dynamics.

Hospitality Environment

The setting or atmosphere provided by businesses in the hospitality industry, such as hotels, restaurants, and bars, aimed at providing services for guests or visitors.