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Consider the World Market for Wheat diagram with a Home Export Supply curve (HES curve) and a Foreign Import Demand curve (FID curve). If the
Consider the World Market for Wheat diagram with a Home Export Supply curve (HES curve) and a Foreign Import Demand curve (FID curve). If the Foreign country experiences an increase in its labour supply, which of the following will occur: Question 6 options: The flat part of FID curve will get shorter and the trading equilibrium ratio of the price of wheat to the price of cloth will fall. The flat part of the FID curve will get longer and the trading equilibrium ratio of the price of wheat to the price of cloth will rise. The entire FID curve will shift up and the trading equilibrium ratio of the price of wheat to the price of cloth will rise. The HES curve and the FID curve will shift in opposite directions and the trading equilibrium ratio of the price of wheat to the price of cloth will be unaffected
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