In a market that moves from a situation of no trade to a situation where a good is exported, the price of the good _______ and the quantity produced by the domestic industry _______ .

Question

Quizplus · Accepted Answer

When a good is exported, it means it is being sold to a foreign country. As a result, the demand for the good increases and thus, the price of the good rises. To meet this increased demand, the domestic industry will have to produce more of the good, resulting in an increase in quantity produced. Therefore, the correct answer is B.

In a Market That Moves from a Situation of No