An increase in demand for Canadian farm exports will ________ the market prices for these exports and ________ economic profit in these markets.

Question

Quizplus · Accepted Answer

An increase in demand for Canadian farm exports will increase the market prices for these exports as demand is greater than the supply. Moreover, an increase in market prices will lead to an increase in economic profit for the producers/sellers of these exports. Therefore, both the market prices and economic profit in these markets will increase.

An Increase in Demand for Canadian Farm Exports Will ________