Answer the Question(s)below Based on the Following Diagram

question 39

Multiple Choice

Answer the question(s) below based on the following diagram.

-Refer to the diagram above,which represents a country's supply and demand for an internationally traded good.If PW is the world price,and a foreign country engages in dumping by selling at P1,the country's consumer surplus will ________ by ________.

• A)increase; abcd
• B)decrease; abcd
• C)increase; bcd
• D)decrease; a

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Definitions:

Plant Capacity

Plant capacity refers to the maximum output a manufacturing or production facility can achieve under normal conditions within a given time period.

Fixed Input

A resource or factor of production whose quantity remains constant regardless of the level of output or activity.

Short Run

A period in economics where at least one input is fixed and cannot be changed, limiting the ability to increase production.

Long Run

A period of time in economics wherein all inputs and factors of production can be varied, with no fixed factors.