Everything Else Held Constant,if a Factor Increases the Demand for ________

question 66

Multiple Choice

Everything else held constant,if a factor increases the demand for ________ goods relative to ________ goods,the domestic currency will appreciate.

• A)foreign;domestic
• B)foreign;foreign
• C)domestic;domestic
• D)domestic;foreign

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Definitions:

Consumer Surplus

The disparity between the amount consumers propose to pay for a good or service and the amount they finally pay.

Profits

The financial gain obtained when the revenue from business activities exceeds the costs and expenses incurred in operating the business.

Price Discrimination

An approach where the same goods or services, either identical or very similar, are priced differently by the same seller in distinct markets.

Inelastic Demand

A situation where the demand for a good or service changes little when its price changes, indicating consumers' lack of sensitivity to price adjustments.