Multiple Choice
Scenario 9-1
The before-trade domestic price of tomatoes in the United States is $500 per ton.The world price of tomatoes is $600 per ton.The U.S.is a price-taker in the market for tomatoes.
-Refer to Scenario 9-1.If trade in tomatoes is allowed,the United States
A) will become an importer of tomatoes.
B) will become an exporter of tomatoes.
C) may become either an importer or an exporter of tomatoes,but this cannot be determined.
D) will experience increases in both consumer surplus and producer surplus.
Correct Answer:
Verified
Related Questions
Q59: Figure 9-3.The domestic country is China.
Q78: Figure 9-4.The domestic country is Nicaragua.