If the World Supply Curve Is S_W1

question 10

Multiple Choice

If the world supply curve is S_W1,

• A)there is a trade surplus of Q₂ -Q1.
• B)there is a trade deficit of Q₂ -Q1.
• C)there is a trade deficit of Q₁ -Q2.
• D)there is a trade surplus of Q₁ -Q2.

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Definitions:

Slope

The measure of steepness or incline of a line, indicating the rate of change between two variables.

Continually Changing

Describes a state of constant evolution or modification, not remaining static.

Variable on the Vertical Axis

Refers to the dependent variable in a graph or chart, plotted along the vertical (Y) axis, whose value depends on the independent variable.

Variable on the Horizontal Axis

In data representation, a quantity that is measured along the horizontal axis, usually independent in nature.