In a Production-Possibilities/indifference Curve Diagram, When a (Small) Country Moves

Multiple Choice

In a production-possibilities/indifference curve diagram, when a (small) country moves From a situation of free trade to a situation of a uniform ad valorem tariff on imports from All trading partners, the ratio of the domestic price of the country's export good to the Domestic price of the country's import good __________.

A) will increase
B) will not change
C) will decrease
D) will increase, not change, or decrease - cannot be determined without more
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