Author Question: If the world price of a good is lower than its domestic equilibrium price, the country will: a. ... (Read 183 times)

laurencescou · **on:** Jun 30, 2018

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 · **Reply #1 on:** Jun 30, 2018

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.