-In the Absence of Trade Between the Two Countries,the Price

question 208

Multiple Choice

$$~~~{ \text { United States } } ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ { \text { China } } \\\begin{array} { c c c c c } \text { Possibility } & \text { Radios } & \text { Rice } & \text { Radios } & \text { Rice } \\\text { A } & 200 & 0 & 300 & 0 \\\text { B } & 100 & 500 & 150 & 300 \\\text { C } & 0 & 1,000 & 0 & 600\end{array}$$
-In the absence of trade between the two countries,the price of rice in the U.S.in terms of radios would tend to be

• A)1/2.
• B)1/5.
• C)200.
• D)500.

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Definitions:

Own Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, ceteris paribus.

Market Demand

The total quantity of a product or service that all consumers in a market are willing and able to purchase at different prices, over a specified period of time.

Affirmative Defense

A response to a plaintiff’s claim that does not deny the plaintiff’s facts but attacks the plaintiff’s legal right to bring an action. An example is the running of the statute of limitations.

Default Judgement

Default Judgement is a binding judgment in favor of either party based on some failure to take action by the other party, most often the failure to respond to a court summons.