With the "opening" of trade, the item exported experiences
a(n. ________ in demand and therefore a(n) ________ in
Its relative (domestic) price, whereas the item imported
Experiences a(n) ________ in demand and therefore a(n)
________ in its relative (domestic) price.
A)increase, increase; decrease, decrease
B)increase, decrease; increase, decrease
C)decrease, decrease; increase, increase
D)decrease, increase; decrease, increase

Question

Quizplus · Accepted Answer

When trade opens, the demand for exported goods increases, leading to an increase in their domestic price. Conversely, the demand for imported goods increases, leading to a decrease in their domestic price.

With the "Opening" of Trade, the Item Exported Experiences