Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Which of the following is not true about the export supply curve? A

Economics Dec 08, 2020

Which of the following is not true about the export supply curve?

A. It describes the excess of foreign supply over foreign demand.

B. It is flatter than the domestic supply curve in the exporting country.

C. It intersects the vertical axis at the foreign equilibrium price in autarky equilibrium.

D. It is steeper than the domestic supply curve in the exporting country.

Expert Solution

The correct answer is B.

It's not true that the export supply curve is flatter than the domestic supply curve in the exporting country.

The export supply curve is a curve that indicates the changes and the differences between the quantity supplied by foreign producers or suppliers and the quantity demanded by foreign customers. The export supply curve changes regularly than the domestic supply curve due to changes in other countries' interest rates, exchange rates, tariffs, and production levels. All these are the factors that influence supply and demand of exports and imports in a particular country. An increase in the given factors reduces demand and supply while a decrease increases foreign products' demand and supply.

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment