-Refer to Table 3-6. If Denmark and Italy specialize and trade according to their respective comparative advantage, who gains in the short run in Denmark?
A) owners of cheese-producing companies
B) owners of milk-producing companies
C) consumers who like cheese
D) consumers who like bread

Question

-Refer to Table 3-6. If Denmark and Italy specialize and trade according to their respective comparative advantage, who gains in the short run in Denmark?
A) owners of cheese-producing companies 
B) owners of milk-producing companies 
C) consumers who like cheese 
D) consumers who like bread

Quizplus · Accepted Answer

Consumers who like cheese gain in the short run in Denmark because they can now buy cheese at a lower price than they could if Denmark did not specialize and trade.