Question

2 4 5 6 8 Quantity If the world price is $6, the producer surplus with trade equals OOOO QUESTIONS If the world price is above the domestic price. With trade, 0 The consumer surplus increases, the producer surplus decreases, and the country will export the product. 0 The consumer surplus increases, the producer surplus decreases, and the country will import the product. 0 The consumer surplus decreases, the producer surplus increases, and the country will export the product. 0 The consumer surplus decreases, the producer surplus increases, and the country will import the product.

Answer 1

OL - Answer B - 2 - Shaded Area is producer surpley with free trade and world price 2 - - I (6-4) x2 x 2x2 = 2 & x-9. Answer-C. Enis domestic price chis world price At domestic price Consumer of a de Surplus is CAED - At world price C, Consumer Surply is A ACB So with world price consumer surplus is less. * with world price producer Surply - 4 GFC with domestic pria producer Surplus-AGDE Country will export Q Q Quantity.

6-18 Answer. False - fixed exchange rate is fixed by Central bank or Central government. After fixing the price or Currency there is no need to interfere the bank in the market. * Deposits of domestic banks are Liabilities of Central banks because they have to give back to comestic banks when demanded by banks. Producer Surplus - c= 18 Producer Surplus= A ABC - 1 x (60-4) 86 B- - - - - = x 6x6 = 18 5 6 -20 Answer False - Rise in value of goods less expensive become expensive for dollars will make foreign and domestic goods will foreignon.
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