When Americans Increase Their Demand for Japanese Goods

question 28

Multiple Choice

When Americans increase their demand for Japanese goods

• A)the demand for dollars will rise,and the demand for yen will rise.
• B)the demand for dollars will fall,and the demand for yen will rise.
• C)the supply of dollars will rise,and the demand for yen will rise.
• D)the supply of dollars will fall,and the demand for yen will fall.

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Definitions:

Competitive Price-Taker

A market participant who must accept the prevailing market prices because they have no influence over those prices due to their small market share.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Homogeneous Products

Goods that are identical in quality and cannot be distinguished from one another by consumers.

Free Entry

Free entry is a market condition where businesses can enter and exit the market without facing significant barriers or costs.