Given the Diagram Below, Which Shows Country a in Its

Multiple Choice

Given the diagram below, which shows country A in its autarky position at point E [where the price line labeled p₀ is tangent to both country A's production-possibilities frontier (PPF) and country A's indifference curve S₀]:

If country A now is opened to international trade in a situation where the price of bread relative to the price of meat is lower on the world market than it is in A's autarky position, then __________; with international trade, country A will be __________.

A) country A will face a steeper price line than p₀ and will change production to a point On the PPF that is downward and to the right from point E; exporting meat and Importing bread
B) country A will face a steeper price line than p₀ and will change production to a point On the PPF that is downward and to the right from point E; exporting bread and Importing meat
C) country A will face a flatter price line than p₀ and will change production to a point on The PPF that is upward and to the left from point E; exporting meat and importing Bread
D) country A will face a flatter price line than p₀ and will change production to a point on The PPF that is upward and to the left from point E; exporting bread and Importing meat