Which of the Following Occurrences Has Led to an Increased

question 90

Multiple Choice

Which of the following occurrences has led to an increased amount of trade between countries?

• A) reduced transportation costs
• B) bowed-out production possibilities curve
• C) increase in the cost of telegraphic communication
• D) high levels of unemployment in the United States

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Definitions:

Price Elasticity

An evaluation of how the requested quantity of a merchandise alters in response to price adjustments.

Perfectly Inelastic

A market condition where the quantity demanded does not change as the price changes.

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Consumer Purchases

This term refers to the buying of goods and services by consumers for their personal use.