The world price of a simple electronic calculator is $5.00. Before Singapore all
ID: 1154850 • Letter: T
Question
The world price of a simple electronic calculator is $5.00. Before Singapore allowed trade in calculators, the price of a calculator there was $4.00. Once Singapore began allowing trade in calculators with other countries, Singapore began a. Importing calculators and the price of a calculator in Singapore increased to $5.00 b. Importing calculators and the price of a calculator in Singapore remained at $4.00 c. Exporting calculators and the price of a calculator in Singapore increased to $5.00 d. Exporting calculators and the price of a calculator in Singapore remained at $4.00
Explanation / Answer
Since the world price of calculators was $5 and in Singapore, the price of the calculator was $4, it meant that the production in Singapore was more efficient. Thus, when Singapore allowing trade, it started to export calculators and the price of calculators in Singapore would rise to $5. Hence, the correct answer is (C).
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.