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Consider the market for American cereals (e.g., Cheerios). Due to a reduction in trade, there are fewer cereals produced abroad that are available to American
Consider the market for American cereals (e.g., Cheerios). Due to a reduction in trade, there are fewer cereals produced abroad that are available to American consumers. What do you think would be the effect of this decline in cereal choices from other countries on the PED for American cereals?
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Increase in its magnitude
Decrease in its magnitude
Unchanged
Unclear
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