If a nation exports a product, then the price of that product in the nation

Question

Quizplus · Accepted Answer

If a nation exports a product, it means that there is a greater demand for that product outside the country than inside. This increase in demand will lead to a rise in price, which will bring the domestic price closer to the world price. As the domestic price is initially lower than the world price, it will rise above the no-trade equilibrium price.

If a Nation Exports a Product, Then the Price of That