If a Country Is a Net Importer of a Good

question 98

Multiple Choice

If a country is a net importer of a good, domestic suppliers will supply ________ of that good after it opens itself to international trade.

• A)more
• B)the same amount
• C)none
• D)less

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Definitions:

Slope of Budget Line

The rate at which one good can be exchanged for another without changing the overall spending, reflecting trade-offs in consumer choice.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with higher elasticity indicating a stronger response.

Change in Price

A variation in the cost of a good or service over a period which can affect demand and supply dynamics in the market.

Price of X

The amount of money required to purchase a specified good or service, indicated here as "X."