If the Ratio of Clothing Price to Food Price Is

question 63

True/False

If the ratio of clothing price to food price is 3 to 1 in America and in is 2 to 1 in Europe before trade, then if trade is opened up, America would most likely export food.

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Definitions:

Demand

The total amount of goods or services that consumers are willing and able to purchase at various prices during a specified period.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.

Price Ceiling

A government-imposed limit on how high the price of a product or service can be charged in the market, aimed at protecting consumers from high prices.

Quantity Demanded

The amount of a product or service consumers are willing and able to purchase at a given price.