The table below shows the domestic price of a pair of trousers in four countries.

-Refer to the table above.If the world price of trousers is $8 per pair,then which of the following statements is true?

Question

The table below shows the domestic price of a pair of trousers in four countries.
 
-Refer to the table above.If the world price of trousers is $8 per pair,then which of the following statements is true?

Quizplus · Accepted Answer

If the world price of trousers is $8 per pair, then Country A's domestic price of $6 per pair is lower than the world price, so Country A will import trousers. Similarly, Country D's domestic price is $7 per pair, which is also lower than the world price, so Country D will also import trousers. Country B's domestic price of $10 per pair is higher than the world price, so Country B will export trousers. Country C's domestic price of $8 per pair is equal to the world price, so Country C will neither import nor export trousers. Therefore, the correct answer is B.

The Table Below Shows the Domestic Price of a Pair