Essentials of Economics 7th Edition by Gregory Mankiw

Exercise 2

Consider a country that imports a good from abroad. For each of following statements, say whether it is true or false. Explain your answer.
a. "The greater the elasticity of demand, the greater the gains from trade."
b. "If demand is inelastic, there are no gains from trade."
c. "If demand is inelastic, consumers do not benefit from trade."