Consider a country that imports a good from abroad. For each of the following statements, say whether

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Consider a country that imports a good from abroad. For each of the following statements, say whether it is true or false. Explain your answer.

a ‘The greater the elasticity of demand, the greater the gains from trade.’

b ‘If demand is perfectly inelastic, there are no gains from trade.’

c ‘If demand is perfectly inelastic, consumers do not benefit from trade.’

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Advanced Macroeconomics

ISBN: 9780415205504

3rd Edition

Authors: David Romer

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Question Posted: Nov 14, 2024 03:02 AM

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Consider a country that imports a good from abroad. For each of the following statements, say whether

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Advanced Macroeconomics

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