Suppose the World Price of a Good Is $4

question 181

Multiple Choice

Suppose the world price of a good is $4. Based on the table below, the country will

• A) import 20 units.
• B) export 20 units.
• C) import 10 units.
• D) export 10 units.

---

Definitions:

Total Expenditures

The sum of all spending or expenses incurred by an individual, household, or organization.

Perfectly Inelastic

describes a situation where the demand for a product does not change in response to changes in its price.

Unitary

Describes a system of government where there is no division of powers between regional governments and a central government, or a singular entity in a given context.

Elasticity of Supply

A measure of how the quantity supplied of a good responds to a change in the price of that good, defined as the percentage change in quantity supplied divided by the percentage change in price.