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Relative to a No-International-Trade Initial Situation, If the United States

Question 105

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Relative to a no-international-trade initial situation, if the United States had a comparative advantage in wine production and exported wine, the U.S. domestic price of wine:


A) ​would rise, but domestic output would fall.
B) ​would fall, but domestic output would rise.
C) ​would rise, and domestic output would rise.
D) ​would fall, and domestic output would fall.

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