Suppose the before-trade domestic price of natural gas in Australia is $15 per kg. The world price of natural gas is $30 per kg. Australia is a price-taker in the natural gas market.
-According to this statement, if trade in natural gas is allowed:
A) Australia will become an importer of natural gas
B) Australia will become an exporter of natural gas
C) Australia may become either an importer or an exporter of natural gas
D) it is impossible to determine whether Australia will become an importer of natural gas or an exporter of natural gas
Correct Answer:
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