Compared to the situation before international trade, after Australia imports a good production in Australia _______ and consumption in Australia _______.

Question

Quizplus · Accepted Answer

When Australia imports a good, domestic production decreases because local producers face competition from imported goods, leading to a reduction in the quantity produced locally. Consumption in Australia increases because imports allow Australians access to more of the good, often at lower prices, leading to an increase in the quantity consumed.

Compared to the Situation Before International Trade, After Australia Imports