If Export Prices Are Higher Than the Import Prices, What

question 22

Multiple Choice

If export prices are higher than the import prices, what can we expect
The wages in the export sector to do?

• A)increase
• B)decrease
• C)stay the same
• D)The answer cannot be determined from the information provided.

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Definitions:

Unit-elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, indicating a unitary elasticity of demand.

Labor Demand

Refers to the quantity of workers that employers are willing to hire at a given wage rate.

Rapidly Declining

This term describes a situation where values, prices, or quantities are decreasing quickly over a period of time.

Occupations

Various forms of employment or professions where individuals engage in specific activities to earn a living, often requiring specialized training or skills.