If This Is an Open Economy, Quantity Supplied of Cars

question 56

Multiple Choice

If this is an open economy, quantity supplied of cars by the domestic producers will be ________.

• A)20,000
• B)40,000
• C)60,000
• D)80,000

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Definitions:

Price of Coffee

The amount of money required to purchase a specific quantity of coffee.

Budget Line

Represents the combination of goods a consumer can purchase with a specific budget at given prices.

Slope

The rate at which a line inclines or declines, showing the relationship between the change in the vertical axis to the horizontal axis.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can purchase given their income and the prices of the goods.