Aquilonia Has Decided to End Its Policy of Not Trading

question 87

Multiple Choice

Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing incense,exporting steel,and neither importing nor exporting rugs.We can conclude that producer surplus in Aquilonia is now

• A)higher in the steel market, lower in the incense market, and unchanged in the rug market.
• B)higher in the incense and steel markets, and unchanged in the rug market.
• C)lower in the incense and rug markets, and higher in the steel market.
• D)lower in the incense and steel markets, and the same in the rug market.

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Definitions:

Very High

A term used to describe a value or level that significantly exceeds established norms or averages.

Very Low

Describes a quantitatively small, minimal, or significantly below average level or amount.

About Average

A term used to describe a value or performance that is near the middle or mean of a distribution or set of data.

Central Tendency

A statistical measure that identifies a single value as representative of the middle or centre of a distribution, commonly measured by mean, median, or mode.