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Suppose That the World Price of Eggs Is $1 a Dozen

Question 35

Multiple Choice

Suppose that the world price of eggs is $1 a dozen, Canada does not trade internationally, and the equilibrium price of eggs in Canada is $3 a dozen.Then Canada begins to trade internationally.The price of eggs in Canada _______.Canadian consumers buy _______ eggs.


A) rises; more
B) falls; more
C) rises; the same quantity of
D) falls; less
E) rises; less

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