When the world price of a product is higher than the domestic price, with international trade domestic consumers will pay a _____ domestic price, and domestic producers will generally _____ the product.

Question

Quizplus · Accepted Answer

When the world price of a product is higher than the domestic price, domestic consumers will end up paying a higher price due to the alignment with the global market, and domestic producers will generally export the product to take advantage of the higher prices available internationally.

When the World Price of a Product Is Higher Than