Compared to price in a completely closed economy, a market in an open economy with an effective quota imposed will result in a. higher prices due to increased demand for the good. b. lower prices due to decreased domestic demand. c. increased total supply and lower prices. d. increase in prices due to decreased foreign supply. e. domestic demand increases leading to lower prices.
Compared to price in a completely closed economy, a market in an open economy with an effective quota imposed will result in a. higher prices due to increased demand for the good. b. lower prices due to decreased domestic demand. c. increased total supply and lower prices. d. increase in prices due to decreased foreign supply. e. domestic demand increases leading to lower prices.
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 7PA
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Compared to
a. higher prices due to increased
b. lower prices due to decreased domestic demand.
c. increased total supply and lower prices.
d. increase in prices due to decreased foreign supply.
e. domestic demand increases leading to lower prices.
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