The before-trade domestic price of honey in Australia is $6 per gallon. The world price of honey is $5 per gallon. Australia is a price taker in the honey market. Given this information, answer the following questions.
a. Will Australia import or export honey?
b. What will the price of honey be in Australia if free trade is allowed?
c. Who will benefit from free trade in this case?
d. Who will lose from free trade?

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The Answer of The before-trade domestic price of honey in Australia is $6 per gallon. The world price of honey is $5 per gallon. Australia is a price taker in the honey market. Given this information, answer the following questions.
a. Will Australia import or export honey?
b. What will the price of honey be in Australia if free trade is allowed?
c. Who will benefit from free trade in this case?
d. Who will lose from free trade?

The Before-Trade Domestic Price of Honey in Australia Is $6