If the Ratio of Price of Cloth (P_C)divided by the Price

question 18

Multiple Choice

If the ratio of price of cloth (P_C) divided by the price of food (P_F) increases in the international marketplace,then

• A)world relative quantity of cloth supplied will increase.
• B)world relative quantity of cloth supplied and demanded will increase.
• C)world relative quantity of cloth supplied and demanded will decrease.
• D)world relative quantity of cloth demanded will decrease.
• E)world relative quantity of food will increase.

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