Solved

In the Opening of Free Trade,if World Prices of a Good

Question 5

Multiple Choice

In the opening of free trade,if world prices of a good are less than domestic prices of that same good,


A) domestic consumers will experience a loss of surplus.
B) domestic prices will drop to the world price level.
C) all domestic producers of that good will try to find another market because they can't compete with foreign producers.
D) domestic producers will increase the quantity supplied in order to crowd out the foreign-produced good.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions