Both Germany and India produce gadgets.Germany sells gadgets for $200 each and India sells them for $100.If free trade were to open up,then:
A) Germany would sell some of its gadgets in India,which would lower supply in Germany and Germans would end up paying a price above $200.
B) India would sell some of its gadgets in Germany,which would lower supply in India and Indians would end up paying a price above $100.
C) Both Germany and India should abstain from trade,since it would be detrimental to both.
D) India would sell all of its gadgets in Germany,driving the supply in India to zero.
Correct Answer:
Verified
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