Figure 34-9

-In Figure 34-9, hostilities break out between Pastaland and Pestoland after Pestoland violates the Treaty of Basil.Consequently, trade stops and the price of pasta

Question

Figure 34-9
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-In Figure 34-9, hostilities break out between Pastaland and Pestoland after Pestoland violates the Treaty of Basil.Consequently, trade stops and the price of pasta

Quizplus · Accepted Answer

When hostilities break out between two countries, trade usually stops leading to a decrease in supply of goods. In this case, the decrease in supply of pasta causes prices to rise in Pastaland and fall in Pestoland.

Figure 34-9 ​

Figure 34-9