Use the Following to Answer Questions

question 255

Multiple Choice

Use the following to answer questions :
Figure: The Market for MP3 Players
-(Figure: The Market for MP3 Players) Look at the figure The Market for MP3 Players. Assume that S_d represents the domestic supply curve and D_d represents the domestic demand curve. If the world price equals $100 and there is free trade, consumer surplus _____ and producer surplus _____ compared to autarky.

• A)increases; decreases
• B)increases; increases
• C)decreases; increases
• D)decreases; decreases

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Definitions:

Fatuous Love

A type of love defined by the presence of passion and commitment but lacking in intimacy, part of Robert Sternberg's triangular theory of love.

Consummate

Describes something as being complete or perfect, often in skill or achievement.

Marital Satisfaction

The degree of contentment and fulfillment a person feels in their marital relationship.

Stability

The state of being resistant to change and maintaining the same condition over time.