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Because Country a Has No Domestic Sources of Wood, It

Question 34

Multiple Choice

Because Country A has no domestic sources of wood, it imports all its wood from wood-producing countries. If the price of wood in wood-producing countries rises substantially, which of the following is most likely to occur?


A) Country A will import more wood to meet rising demand.
B) Country A will impose a tariff on wood imports.
C) Housing prices in Country A will increase as wood imports become more expensive.
D) Profits in other wood-producing countries will increase because of increased exports to Country A.

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