If a country is a net importer of a good, the price of that good will ________ when the economy goes from closed to open for trade.
A)increase
B)stay the same
C)first increase then decrease
D)decrease

Question

Quizplus · Accepted Answer

If the price of a good or service in a closed economy is greater than the world price, and that economy opens itself to trade, the economy will tend to become a net importer of that good or service.

If a Country Is a Net Importer of a Good