Exporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good? a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports. b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade. b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade. c) Some domestic suppliers will lose surplus while others will gain surplus. Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.
Exporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good? a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports. b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade. b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade. c) Some domestic suppliers will lose surplus while others will gain surplus. Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Exporting countries
Which of the following will be true, everything else remaining constant, for a country that exports some good?
a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports.
b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade.
b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade.
c) Some domestic suppliers will lose surplus while others will gain surplus.
Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.
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