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Figure: Market for Watches in Countries A and B
-(Figure: Market for Watches in Countries A andB)Referring to the graphs,we see that,after free trade,producers in Country A will _____ and producers in Country B will _____.

Question

Use the following to answer questions 
Figure: Market for Watches in Countries A and B 
-(Figure: Market for Watches in Countries A andB)Referring to the graphs,we see that,after free trade,producers in Country A will _____ and producers in Country B will _____.

Quizplus · Accepted Answer

After free trade, producers in Country A will increase production due to access to a larger market, while producers in Country B will decrease production due to increased competition from Country A.

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