Country A decides to sign a trade agreement with Country B.Suppose Country B specializes in producing electronics.We can expect the quantity of electronics imported from Country B to ________ and the price of electronics in Country A to ________.

Question

Quizplus · Accepted Answer

When a country signs a trade agreement with another country that specializes in a particular product, it typically leads to an increase in imports of that product due to reduced trade barriers. As the supply of electronics in Country A increases due to imports from Country B, the price of electronics in Country A is expected to decrease due to the principles of supply and demand.

Country a Decides to Sign a Trade Agreement with Country