If both firms in a duopoly cheat on a collusive agreement, the ...

[sarasara]

If both firms in a duopoly cheat on a collusive agreement, the price ________ and both firms are ________.
 
  A) falls; better off
  B) rises; worse off
  C) falls; worse off
  D) rises; better off

Question 2

In the foreign exchange market, how does a fall in the U.S. interest rate affect the supply of dollars?
 
  What will be an ideal response?

[jrpg123456]

Answer to Question 1

C

Answer to Question 2

The fall in the U.S. interest rate increases the supply of dollars as U.S. residents supply more dollars in order to obtain foreign currency with which to buy foreign assets that now have relatively higher interest rates.

[sarasara]

Thanks for the timely response, appreciate it

[bitingbit]

Gracias!