If the Output of a Nations Exportable Commodity Increases Proportionally

question 2

Multiple Choice

If the output of a nations exportable commodity increases proportionally more than the output of its importable commodity the output changes in considered

• A) neutral
• B) negative
• C) anti-trade
• D) pro-trade

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Definitions:

Industry Supply

The total output of a particular good or service that all producers in the market are willing and able to sell at a given price level, over a specific time period.

Short-Run Market Supply

The total quantity of a good or service that producers are willing and able to sell at various prices over a short period, where some production factors are fixed.

Market Price

The price of a commodity when sold in a competitive marketplace, determined by supply and demand.

Market Demand

The total demand for a product or service aggregated across all individuals in the market at various price levels.