Suppose That the Equations S = 2P and D =

question 15

Multiple Choice

Suppose that the equations S = 2P and D = 6 - P represent a small country's home supply and home demand curves. If the world price is $1, which of the following is the increase in the country's welfare when it trades compared with autarky?

• A) $6.00
• B) $4.50
• C) $1.50
• D) $0.50

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Definitions:

ATM

An automated teller machine, a specialized computer that allows bank customers to perform financial transactions without the need for a human cashier.

Checking Account

A bank account that allows for both deposits and withdrawals, typically used for day-to-day financial transactions.

Cashier's Check

A check issued by a bank, drawing on its own funds rather than on the account of a private individual, offering a secure means of payment.

Checking Account

A bank account that allows the holder to withdraw funds using checks or a debit card, typically used for daily transactions.