Compared to the situation before international trade, after the United States imports a good production in the United States and consumption in the United States .

Question

Quizplus · Accepted Answer

After international trade, the United States will import a good, resulting in a decrease in domestic production. This will lead to a decrease in the domestic supply of the good, which could lead to an increase in the domestic price of the good. In turn, this will lead to a decrease in domestic consumption and an increase in imports. Therefore, the domestic consumption of the good will increase while the domestic production of the good will decrease.

Compared to the Situation Before International Trade, After the United