Use the following information to answer the following questions.
The before-trade price of logs in New Zealand is $100 per cubic metre. The world price of logs is $200 per cubic metre. New Zealand is a price taker in the world log market.
-If New Zealand allows trade in logs, domestic consumers of logs will be:

Question

Quizplus · Accepted Answer

When New Zealand allows trade, the domestic price will rise to the world price of $200. Domestic consumers will be worse off because they have to pay a higher price, while producers will be better off because they can sell at the higher world price.

Use the Following Information to Answer the Following Questions