If the Long-Run Supply of Rice Is Perfectly Elastic, Then

question 358

Multiple Choice

If the long-run supply of rice is perfectly elastic, then

• A) as people's incomes rise, the quantity of rice supplied decreases.
• B) as the price of corn falls, the quantity of rice demanded decreases.
• C) in the long run, a large rise in the price of rice causes no change in the quantity of rice supplied.
• D) in the long run, an increase in the demand for rice leaves the price of rice unchanged.

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Definitions:

GATT

GATT, or the General Agreement on Tariffs and Trade, was a legal agreement created in 1947 to minimize barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations.

International Migration

The movement of individuals across national borders for the purpose of settling in a new country, either temporarily or permanently.

World Output

The total value of all goods and services produced across the globe.

Illegal Immigrants

People who have entered a country unlawfully to reside there; also called unauthorized immigrants.