Assume There Is No Trade Between Lizland and Kitland

Multiple Choice

Assume there is no trade between Lizland and Kitland. The price of a toothbrush is $1 in Lizland and $3 in Kitland. The price of a candy bar is $2 in Lizland and $2.50 in Kitland. If trade opens up between the two countries, which of these is the likely result?

A) A toothbrush sells for $1.50 and a candy bar sells for $2.50 in both countries, with Kitland as the importer of candy bars and both as the exporters of toothbrushes.
B) A toothbrush sells for $2 and a candy bar sells for $2.25 in both countries, with Lizland as the exporter of candy bars and Kitland as the exporter of toothbrushes.
C) A toothbrush sells for $2 and a candy bar sells for $2.25 in both countries, with Lizland as the importer of candy bars and Kitland as the importer of toothbrushes.
D) A toothbrush sells for $2.25 and a candy bar sells for $1.75 in both countries, with Lizland as the importer of toothbrushes and Kitland as the importer of candy bars.