Multiple Choice
Use the following to answer questions :
Figure 18-2
-Which of the following is a true statement in reference to Figure 18-2?
A) Country A exports wheat to Country B.
B) Free trade harms Country B.since the price of wheat is greater than in equilibrium.
C) A prohibitive tariff would lower the price of wheat in Country A.
D) The diagram would require no modification if Country A improved its relative efficiency in wheat production.
E) Free trade would lower the price of wheat in Country A.
Correct Answer:

Verified
Correct Answer:
Verified
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