In the opening of free trade, if world prices of a good are less than domestic prices of that same good, Select one: all domestic producers of that good will try to find another market because they can't compete with foreign producers domestic producers will increase the quantity supplied in order to crowd out the foreign-produced good. domestic consumers will experience a loss of surplus. domestic prices will drop to the world price level.
In the opening of free trade, if world prices of a good are less than domestic prices of that same good, Select one: all domestic producers of that good will try to find another market because they can't compete with foreign producers domestic producers will increase the quantity supplied in order to crowd out the foreign-produced good. domestic consumers will experience a loss of surplus. domestic prices will drop to the world price level.
Chapter35: International Trade Restrictions
Section: Chapter Questions
Problem 3E
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