• 2022-05-29
    Free markets allocate (a) the supply of goods to the buyers who value them most highly and (b) the demand for goods to the sellers who can produce them at least cost.
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      If two goods are substitutes, then an increase in the price of one of them will increase the demand for the other.

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      Adam Smith believes that a country should produce only goods with which it is least efficient, and trade for those goods with which it is most efficient.

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      The equilibrium price is a point at which buyers’ demand for a product and sellers’ supply of it are in balance.

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      ____, buyers are free to bypass sellers who offer items in which they have no interest or that they feel are priced too high.

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      The higher the exchange rate, the A: the lower the dollar cost of imported goods and the higher the demand for foreign exchange. B: higher the dollar cost of imported goods and the lower the demand for foreign exchange. C: higher both the dollar cost of imported goods and the demand for foreign exchange. D: the lower both the dollar cost of imported goods and the demand for foreign exchange.