After a nation starts importing a good from overseas,the domestic price of the good
A) falls.
B) stays the same.
C) rises.
D) might change, but more information about what the country exports is needed to determine if the price rises, falls, or does not change.
E) might change, but more information about what else the country imports is needed to determine if the price rises, falls, or does not change.

Question

Quizplus · Accepted Answer

When a nation starts importing a good, the domestic price of that good typically falls. This is because the imported goods increase the supply of the good in the domestic market, leading to lower prices.

After a Nation Starts Importing a Good from Overseas,the Domestic