The excess supply curve of a product we (H) import from foreign countries (F) increases as
A) excess demand of country H increases.
B) excess demand of country F increases.
C) excess supply of country H increases.
D) excess supply of country F increases.
E) excess supply of country F decreases.

Question

Quizplus · Accepted Answer

The excess supply curve of a product we import from foreign countries increases as the excess supply of country F increases. This is because an increase in the excess supply of the product in country F would lead to more of the product being available for export to country H, increasing the excess supply in country H as well.

The Excess Supply Curve of a Product We (H) Import