Consider a Market That, with No International Trade, Is Initially

question 146

Multiple Choice

Consider a market that, with no international trade, is initially in equilibrium with quantity demanded equal to quantity supplied at a price of $20. If the world price of the good is $10 and the country opens up to international trade then in this market

• A) imports will increase, price will fall, and quantity supplied will fall.
• B) exports will increase, price will be unchanged, and quantity supplied will increase.
• C) imports will increase, price will decrease, and the supply curve will shift to the left.
• D) quantity demanded will decrease, quantity supplied will decrease, and price will decrease.

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Definitions:

Cofactors

Non-protein chemical compounds or metallic ions that are required for an enzyme's activity as a catalyst.

Endergonic Reactions

Chemical reactions that require an input of energy to proceed and are characterized by a positive change in free energy.

Transition State

A high-energy state during a chemical reaction where reactants are converted into products, representing the point of maximum energy during the reaction.

Substrates

A substance or layer that underlies something, or on which some process occurs, in various scientific fields, it often refers to the base on which an organism grows or the substance enzymes act upon.