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Answer: 5. If Canada begins to export furniture, it is because the domestic price of furniture: A) decline, leading to a decrease in production; imports fill the gap. B) rises, leading to a reduction in demand, the difference being exported. C) remains the same, but Canada is increasing its furniture production to meet global demand. D) rises, demand falls, production increases and the surplus is exported. E) rises, demand increases and imports fill the gap.

Answer: 5. If Canada begins to export furniture, it is because the domestic price of furniture: A) decline, leading to a decrease in production; imports fill the gap. B) rises, leading to a reduction in demand, the difference being exported. C) remains the same, but Canada is increasing its furniture production to meet global demand. D) rises, demand falls, production increases and the surplus is exported. E) rises, demand increases and imports fill the gap.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer: 5. If Canada begins to export furniture, it is because the domestic price of furniture: A) decline, leading to a decrease in production; imports fill the gap. B) rises, leading to a reduction in demand, the difference being exported. C) remains the same, but Canada is increasing its furniture production to meet global demand. D) rises, demand falls, production increases and the surplus is exported. E) rises, demand increases and imports fill the gap.
Transcribed Image Text:Answer: 5. If Canada begins to export furniture, it is because the domestic price of furniture: A) decline, leading to a decrease in production; imports fill the gap. B) rises, leading to a reduction in demand, the difference being exported. C) remains the same, but Canada is increasing its furniture production to meet global demand. D) rises, demand falls, production increases and the surplus is exported. E) rises, demand increases and imports fill the gap.
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