For Suppliers to Sell More Than the Equilibrium Quantity, It

question 116

Multiple Choice

For suppliers to sell more than the equilibrium quantity, it would mean that:

• A) it costs suppliers less to produce the good than its value to buyers.
• B) it costs suppliers more to produce the good than its value to buyers.
• C) the gains from trade increase.
• D) suppliers gain from trade while buyers are unaffected.

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Definitions:

Specialize

Specialize refers to the process of focusing efforts and resources on a narrow area of expertise or production to gain efficiency, higher quality, or other advantages.

Comparative Advantage

An economic principle that states a country or individual can produce goods at a lower opportunity cost than others, leading to more efficient global trade outcomes.

France

A country in Western Europe known for its rich history, culture, and significant contributions to art, science, and politics.

England

A country that is part of the United Kingdom, known for its rich history, cultural landmarks, and as a global financial center.