When the relative prices of American-made goods go up,the result is
A)an increase in the exports of Canadian-made goods.
B)a decrease in exports of Canadian-made goods.
C)a decrease in imports of Canadian-made goods.
D)no net change in imports or exports of Canadian-made goods.

Question

Quizplus · Accepted Answer

When the relative prices of American-made goods increase, Canadian-made goods become relatively cheaper for both American and international consumers, potentially leading to an increase in the exports of Canadian-made goods.

When the Relative Prices of American-Made Goods Go Up,the Result