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Computer Game Cartridges Produced in EconomyLand Sell for $50 Each

Question 180

Multiple Choice

Computer game cartridges produced in EconomyLand sell for $50 each. The same cartridges made in MarketLand sell for $100 each. If free trade were allowed, we would expect the prices in both countries to


A) move to the lower price of $50.
B) move to the higher price of $100.
C) converge to somewhere between $50 and $100.
D) remain unchanged.

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