Refer to the information provided in Figure 33.3 below to answer the question(s) that follow. Figure 33.3
-Refer to Figure 33.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. If shoes are a normal good and income in this country rises, then we would expect
A) the number of pairs of shoes imported into this country to increase.
B) the number of pairs of shoes imported into this country to decrease.
C) the number of pairs of shoes exported from this country to increase.
D) the number of pairs of shoes exported from this country to decrease.

Question

Refer to the information provided in Figure 33.3 below to answer the question(s) that follow.  Figure 33.3
-Refer to Figure 33.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. If shoes are a normal good and income in this country rises, then we would expect
A) the number of pairs of shoes imported into this country to increase. 
B) the number of pairs of shoes imported into this country to decrease. 
C) the number of pairs of shoes exported from this country to increase. 
D) the number of pairs of shoes exported from this country to decrease.

Quizplus · Accepted Answer

When income rises, the demand for normal goods like shoes increases. Since the domestic price is higher than the world price, the country will import more shoes to satisfy the increased demand.

Refer to the Information Provided in Figure 33