0
When a country is too small to affect the world price allowing for free trade will never increase total surplus?
When a country is too small to influence world prices, it is considered a price taker in international markets. In this scenario, allowing free trade will not increase total surplus because the country can access goods at the same prices as before trade, ensuring that domestic consumers and producers are unaffected by international price shifts. Consequently, the total surplus remains unchanged as there are no gains from trade, making free trade ineffective in enhancing overall economic welfare for such small countries.
What else can I help you with?
How does an increase in equilibrium price affect consumer and producer surplus?
An increase in equilibrium price generally leads to a decrease in consumer surplus, as consumers either pay more for the same goods or buy less due to higher prices. Conversely, producer surplus tends to increase because producers receive higher prices for their goods, resulting in greater revenue and profit margins. Overall, while consumers may feel the burden of higher prices, producers benefit from the increased revenue. The net effect on total surplus depends on the magnitude of changes in consumer and producer surplus.
How would Government restrictions affect consumer surplus?
Government restrictions would decrease consumer surplus because it shifts the supply curve to the left
How will increase in exports affect balance of payments in a developing country?
increase in exports means that other countries are demanding goods from your coutry. hence, more money flows in.
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
How does growth in population affect economic development of country?
Every one know that, now a days population increasing. due to increase in population , poverty is also increase. it affect on our economic development. growth of economic development stop by poverty.
How does an increase in equilibrium price affect consumer and producer surplus?
An increase in equilibrium price generally leads to a decrease in consumer surplus, as consumers either pay more for the same goods or buy less due to higher prices. Conversely, producer surplus tends to increase because producers receive higher prices for their goods, resulting in greater revenue and profit margins. Overall, while consumers may feel the burden of higher prices, producers benefit from the increased revenue. The net effect on total surplus depends on the magnitude of changes in consumer and producer surplus.
Which was an affect of the agricultural revolution?
A Food Surplus.
What are the factors affect death rate of sri lanka?
lack of food supply and increase of polution in the country
How would Government restrictions affect consumer surplus?
Government restrictions would decrease consumer surplus because it shifts the supply curve to the left
How will increase in exports affect balance of payments in a developing country?
increase in exports means that other countries are demanding goods from your coutry. hence, more money flows in.
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
How does growth in population affect economic development of country?
Every one know that, now a days population increasing. due to increase in population , poverty is also increase. it affect on our economic development. growth of economic development stop by poverty.
How did the production of surplus food affect the political economic and social life of Sumer?
sumerians
HOW DID SURPLUSES AFFECT THE SUPPLY AND DEMAND ECONOMY?
A surplus will tend to drive the price down.
How does the presence of a monopoly affect the consumer surplus graph?
The presence of a monopoly typically reduces consumer surplus on a graph. This is because monopolies have the power to set higher prices and limit the quantity of goods available, leading to less surplus for consumers.
How will the rugby world cup affect new zealand?
It will increase the tourist trade vastly which has a direct impact on the financial growth of the country. The amount of extra jobs will increase if only for a short period to deal with the footfall of visitors to the country. Advertising will increase in grounds which have matches televised - these will go global.
What if there were no biological control in agricultural?
The number of pest will increase and affect the plantation. Humans will lost its source of money. It will affect the country by , when there is no more food , it will explore more places to search for food .
