Figure 9-5

-Refer to Figure 9-5.If this country allows free trade in wagons,

Question

Figure 9-5
 
-Refer to Figure 9-5.If this country allows free trade in wagons,

Quizplus · Accepted Answer

If free trade in wagons is allowed, consumers will be able to purchase wagons at a lower price due to increased competition from foreign producers. This will lead to a gain for consumers. However, domestic producers will face competition from foreign producers and may lose market share or even go out of business, resulting in a loss for producers. Therefore, the best choice is A where consumers will gain and producers will lose.

Figure 9-5 -Refer to Figure 9-5.If This Country Allows Free Trade in Allows