Given the Information in the Table Above, If It Is

question 32

Multiple Choice

Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to produce its exports, then home should

• A) export cloth.
• B) export widgets.
• C) export both and import nothing.
• D) export and import nothing.
• E) export widgets and import cloth.

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Definitions:

Inelastic Supply

Characterizes a situation where the quantity supplied of a good is not significantly changed by the price of that good.

Antiques

Objects of considerable age valued for their artistic, historical, or collectible qualities.

Pricing Power

The ability of a company or an entity to dictate the price of its goods or services without losing market share to competitors.

Elasticities of Demand

Refers to various measures of how the quantity demanded of a good responds to changes in prices, income, or other goods' prices.