Suppose Foreign Shrimp Prices Drop by 32 Percent and Importers

question 80

Multiple Choice

Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share. From this information, what would economists strongly suspect about this industry?

• A) Foreigners have a comparative advantage in shrimping.
• B) Americans have a comparative advantage in shrimping.
• C) Foreign sellers probably are colluding on price to maximize profits.
• D) The large sales of foreigners indicate that they are better strategic bargainers than Americans are.

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Definitions:

Prepurchase Anxiety

A consumer's feeling of apprehension or fear prior to making a purchase, often due to uncertainty or potential regret.

Hedonic Shopping

Shopping activities driven by the pursuit of pleasure, leisure, and emotional gratification.

Timestyle

The manner in which individuals perceive and utilize their time, reflecting their priorities, values, and lifestyle.

Economic Shopper

A consumer primarily motivated by price and value, seeking to maximize benefits while minimizing costs.