Multiple Choice
Suppose Russia produces caviar that sells for $15 a can, and the United States produces caviar at a price of $20 per can. If all caviar were the same and there are no barriers to trade, then
A) consumers would buy all of the U.S.-produced caviar.
B) Russians would see the price of their caviar drop due to U.S. competition.
C) the equilibrium price of caviar would be between $15 and $20.
D) Americans would see the price of caviar rise.
Correct Answer:
Verified
Correct Answer:
Verified
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