In the case of the economist's definition of "dumping," an exporting firm is selling its product at a __________ price in the importing country than in the exporter's home country, and this suggests that demand for the exporter's product is __________ in the exporting country than in the importing country.
A) higher; more elastic
B) higher; less elastic
C) lower; less elastic
D) lower; more elastic

Question

Quizplus · Accepted Answer

The economist's definition of "dumping" defines it as an exporting firm selling its product at a lower price in the importing country than in the exporter's home country. This suggests that demand for the exporter's product is lower in the exporting country than in the importing country, as the exporter is willing to sell it at a lower price to make sales in the importing country. Additionally, the elasticity of demand in the exporting country is not relevant to the definition of dumping.

In the Case of the Economist's Definition of "Dumping," an Exporting