Figure 9-6

-Refer to Figure 9-6.If this country allows free trade in wagons,who will gain or lose
A)Consumers will gain, and producers will lose.
B)Consumers will lose, and producers will gain.
C)Both consumers and producers will gain.
D)Both consumers and producers will lose.

Question

Figure 9-6
 
-Refer to Figure 9-6.If this country allows free trade in wagons,who will gain or lose
A)Consumers will gain, and producers will lose. 
B)Consumers will lose, and producers will gain. 
C)Both consumers and producers will gain. 
D)Both consumers and producers will lose.

Quizplus · Accepted Answer

If free trade is allowed, the price of wagons will decrease, which benefits the consumers as they can buy wagons at a lower price. However, producers will face more competition, which may lead to a decrease in their profits or even bankruptcy. Therefore, consumers will gain, and producers will lose.

Figure 9-6 -Refer to Figure 9-6.If This Country Allows Free Trade in Allows