The Figures Below Show Markets for Solar Panels and Textiles

Multiple Choice

The figures below show markets for solar panels and textiles in Banana Republic. Pwₒᵣld is the world price in each market.

-Refer to the figures above.Suppose that,before Banana Republic opened up its markets to international trade,the domestic markets were in long-run equilibrium.All else being equal,what is expected to happen in the long run after the markets are opened up to trade?

A) The new long-run equilibrium is achieved at the world price in each market.
B) The price in each market will move toward the original long-run equilibrium price.
C) Resources will shift from production of solar panels to production of textiles.
D) Resources will shift from production of textiles to production of solar panels.