Author Question: Free trade refers to trade between countries A) that is licensed by both governments. B) that ... (Read 127 times)

DelorasTo · **on:** Jun 29, 2018

Free trade refers to trade between countries

A) that is licensed by both governments.
B) that is without shipping costs.
C) of products which are free to low-income consumers.
D) that is without restrictions.

Question 2

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

A) S increases, D no change, P decreases, Q increases.
B) D increases, S no change, P and Q increase.
C) D and S increase, P and Q decrease.
D) D no change, S increases, P decreases, Q decreases.