Refer to the Graph

question 124

Multiple Choice

Refer to the graph. If U.S. citizens flock to Canada for summer vacations and buy more Canadian goods and services, then the

• A)supply curve will shift left.
• B)demand curve will shift right.
• C)price of U.S. dollars in Canadian dollars will rise.
• D)price of U.S. dollars in Canadian dollars will fall.

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Definitions:

Producer Surplus

This economic term represents the excess profit that producers make over the minimum amount they would be willing to accept for selling their goods, highlighting the benefit to sellers in a market.

Consumer Surplus

The variance between the sum consumers are ready and financially able to spend on a product or service and the sum they actually spend.

Excise Tax

A tax levied on specific goods or services, such as alcohol, tobacco, and gasoline.

Elastic Supply

A situation where the quantity supplied of a good changes significantly in response to changes in its price.