Consider a market that, with no international trade, is initially in equilibrium with quantity demanded equal to quantity supplied at a price of $20. If the world price of the good is $10 and the country opens up to international trade then in this market

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Imports will increase because the world price is lower than the domestic price. The price will fall to the world price of $10. The quantity supplied will fall because producers will switch to producing other goods that are more profitable.

Consider a Market That, with No International Trade, Is Initially