Relative to a closed economy, if Utopia opened itself to trade, domestic tile producers would

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In a closed economy, the domestic price is determined by the intersection of domestic supply and domestic demand, which in this example occurs at a price of $20 per case. At that price, 300 cases of ceramic tile are supplied each year. In an open economy, the domestic price becomes the world price, which in this example is $15 per case. At that price, 200 cases of ceramic tile are supplied each year. Thus, if Utopia opens itself up to trade, domestic tile producers will produce 100 fewer cases of tile each year.

Relative to a Closed Economy, If Utopia Opened Itself to Trade