An Increase in Imports That Results in a Widened Trade

question 31

True/False

An increase in imports that results in a widened trade deficit must be considered unfavorable in a prosperous economy.

Assess how changes in determinants of demand and supply, such as consumer income or resource prices, affect market equilibrium.

Explain the impact of changes in the prices of substitute goods on the demand for a product.

Identify the outcomes of simultaneous shifts in both supply and demand curves on equilibrium price and quantity.

Understand the significance of equilibrium in achieving allocative efficiency in markets.

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Definitions:

Weakens

Refers to the decrease or reduction in strength, effectiveness, or value.

C$

C$ refers to the Canadian Dollar, the currency of Canada, symbolized as CAD in the foreign exchange market.

US$

The abbreviation for the United States Dollar, the official currency of the United States of America.

Exchange Rates

The price at which one currency can be exchanged for another.