Final answer:
The excess supply curve of a product we (H) import from foreign countries (F) increases as: `Imports increase and domestic demand decreases`
The correct answer is a
Step-by-step explanation:
This increases the overall supply of the product in the domestic market. At the same time, if domestic demand for the product decreases, it means that consumers in the domestic market are buying less of it.
The combination of increased imports and decreased domestic demand leads to an excess supply of the product. Excess supply occurs when the quantity supplied exceeds the quantity demanded at a given price. In this case, the excess supply curve of the product will increase, indicating that there is an oversupply in the domestic market.
To summarize, when imports of a product increase and domestic demand decreases, it results in an excess supply of the product, leading to an increase in the excess supply curve.
The correct answer is a) Imports increase and domestic demand decreases.