Which of the Following Is NOT a Consequence of International

question 27

Multiple Choice

Which of the following is NOT a consequence of international trade for an exporting country?

• A)both domestic consumers and domestic producers will be better off
• B)the domestic price will rise to equal the world price
• C)domestic consumers will be worse off and domestic producers will be better off
• D)total combined consumer and producer surplus will rise

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the good's sensitivity to price changes.

City Revenues

The income generated by a municipality from sources like taxes, fees, and grants which is used to fund public services.

Income Elasticity

A measure of how much the demand for a product changes in relation to a change in consumers' incomes.

Luxuries

Items or services that are considered non-essential but desirable, typically associated with high quality and a higher price.