Refer to the Information Provided in Figure 19

question 150

Multiple Choice

Refer to the information provided in Figure 19.3 below to answer the questions that follow.
Figure 19.3
-Refer to Figure 19.3.The domestic price of shoes is $80.After trade the price of a pair of shoes is $60.If shoes are a normal good and income in this country rises,then we would expect

• A)the number of pairs of shoes imported into this country to increase.
• B)the number of pairs of shoes imported into this country to decrease.
• C)the number of pairs of shoes exported from this country to increase.
• D)the number of pairs of shoes exported from this country to decrease.

---

Definitions:

Perfect Substitutes

Goods or services that can be used in exact place of each other with no loss of utility to the consumer, often characterized by a constant marginal rate of substitution.

Production

The process of creating goods or services by combining various inputs like labor, raw materials, and machinery.

Marginal Productivity

Marginal productivity refers to the additional output that is produced by adding one more unit of a factor of production, holding all other factors constant.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services, forming a crucial component of the economic production process.