Importing and the effects of importing to the country.

Question

7. Consider a country that imports a good from abroad.For each of following statements, state whether it istrue or false. Explain your answer.a. “The greater the elasticity of demand, the greaterthe gains from trade.”b. “If demand is perfectly inelastic, there are no gainsfrom trade.”c. “If demand is perfectly inelastic, consumers donot benefit from trade.”

Answer 1

Question

Chapter 9, Problem 7PA

Sub part (a):

To determine

Importing and the effects of importing to the country.

Sub part (b):

To determine

Importing and the effects of importing to the country.

Sub part (c):

To determine

Importing and the effects of importing to the country.

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