anthonyalvar6636
02.03.2020 •
Business
Suppose the demand for French bread rises.
Explain what happens to producer surplus in the market for French bread.
Explain what happens to producer surplus in the market for flour.
Illustrate your answers with diagrams.
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Ответ:
Rise in producer surplus for french bread
Rise in producer surplus in the market for flour
Explanation:
As demand for french bread rises it will raise its price, a rise in price of french bread will increase the producer surplus. the producer surplus for flour will also rise since its the main ingredient of bread a rise in demand for bread will increase the demand for flour as well raising its price hence producer surplus.
Note: A picture of the graph is attached
Ответ:
(A.) Comparative advantage explains trade within nations and among nations.
Explanation:
Comparative advantage refers to an economy's power to produce commodities and services at a lower opportunity cost than their trade partners. A comparative advantage gives a institution the power to sell goods and services at a lower price than its competitors.