William and Jamal live in the country of Dumexia. When Dumexia legalized international trade in bananas, the price of bananas in Dumexia increased. As a result, William became better off and Jamal became worse off. It follows that William is a seller, and Jamal is a buyer, of bananas.

Question

Quizplus · Accepted Answer

When the price of bananas increased due to the legalization of international trade, sellers (like William) would benefit from higher prices, while buyers (like Jamal) would be disadvantaged by having to pay more, thus making William better off and Jamal worse off.

William and Jamal Live in the Country of Dumexia