Static gains from trade come about because trade causes consumers and producers to face a different set of prices.

Question

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Static gains from trade occur because trade enables consumers and producers to access a greater variety of goods and services at lower prices than they would otherwise have in the absence of trade. This occurs because trade facilitates the specialization of production and allows countries to take advantage of their comparative advantages in the production of certain goods and services. As a result, consumers are able to buy more goods at lower prices, while producers are able to sell more goods at higher prices, leading to overall gains from trade.

Static Gains from Trade Come About Because Trade Causes Consumers