As a result of importing a good,domestic producers ________ the quantity produced and the price of the good ________.
A) increase; rises
B) increase; falls
C) decrease; rises
D) decrease; falls
E) decrease; does not change

Question

Quizplus · Accepted Answer

When a country imports a good, domestic producers typically decrease the quantity produced because they face competition from the imported goods. This competition also tends to lower the price of the good in the domestic market.

As a Result of Importing a Good,domestic Producers ________ the Quantity