If the world price of a good is lower than its domestic ...

[laurencescou]

If the world price of a good is lower than its domestic equilibrium price, the country will:
 a. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
  b. export a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied domestically.
  c. import a quantity of the good equal to the difference between the quantity demanded domestically and the quantity supplied by foreign producers.
  d. export a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied domestically.
  e. import a quantity of the good equal to the difference between the quantity demanded by foreign consumers and the quantity supplied by foreign producers.

Question 2

What is the difference between private and social costs?

[bubulittle310@msn.cn]

Answer to Question 1

a

Answer to Question 2

Social costs are those that accrue to the total population; private costs refer to those costs incurred only by the producer or consumer of the good or service.

[laurencescou]

YES! Correct, THANKS for helping me on my review

[bdobbins]

Gracias!