If the Price of Torches in Estonia Is $100 and the World

question 90

Multiple Choice

If the price of torches in Estonia is $100 and the world price is $150, how would producer surplus change if Estonia opened to world trade?

• A)it would rise by $50
• B)it would rise by more than consumer surplus would fall
• C)it wouldn't change but consumer surplus would rise
• D)it would change by the same amount as consumer surplus

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Definitions:

Familiarity Effect

The tendency of people to feel more positive toward a person, item, product, or other stimulus the more familiar they are with it.

Positive Toward

Positive toward is not a recognized psychological or scientific term and may be a typographical error or miscommunication. NO.

Stereotypes

Oversimplified and widely held beliefs about the characteristics, attributes, and behaviors of a particular group of people.

Exaggerate Differences

The act of making distinctions between entities more pronounced or significant than they actually are.