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(Figure: Market for Watches in Countries a and B) Referring

Question 12

Multiple Choice

(Figure: Market for Watches in Countries A and B) Referring to the graphs, we see that, after free trade, producers in country A will _____ and producers in country B will _____. (Figure: Market for Watches in Countries A and B)  Referring to the graphs, we see that, after free trade, producers in country A will _____ and producers in country B will _____.   A)  increase production of watches; produce the same amount of watches B)  increase production of watches; decrease production of watches C)  produce the same number of watches; increase the production of watches D)  produce the same number of watches; decrease the production of watches


A) increase production of watches; produce the same amount of watches
B) increase production of watches; decrease production of watches
C) produce the same number of watches; increase the production of watches
D) produce the same number of watches; decrease the production of watches

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