Franky believes that there should be no trade restrictions for any reason.What effect would Franky say that trade restrictions have on prices?
A) He would argue that by encouraging competition with trade restrictions,prices are likely to decrease.
B) He would argue that restrictions would cause greater competition and therefore lead to higher prices.
C) He would say that trade restrictions have no impact on prices,but they do restrict consumers' choices.
D) He would say that restrictions reduce competition and therefore cause an increase in prices.
E) He would argue that trade restrictions increase prices because they break up domestic monopolies.

Question

Quizplus · Accepted Answer

Franky believes that trade restrictions reduce competition, which leads to an increase in prices. Without the competition from other countries, domestic producers can charge higher prices, which hurts consumers. Therefore, Franky would advocate for the removal of trade restrictions to make markets more competitive and keep prices low.

Franky Believes That There Should Be No Trade Restrictions for Any