Refer to the information provided in Figure 18.3 below to answer the questions that follow. Figure 18.3
-Refer to Figure 18.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. This would cause the number of pairs of shoes produced domestically to

Question

Refer to the information provided in Figure 18.3 below to answer the questions that follow.  Figure 18.3
-Refer to Figure 18.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. This would cause the number of pairs of shoes produced domestically to

Quizplus · Accepted Answer

When the price of a domestically produced good decreases due to trade, the domestic producers will face increased competition from imports, which will cause them to decrease production. This is because they will no longer be able to sell as much of their product at the higher domestic price. Therefore, the number of pairs of shoes produced domestically would decrease.

Refer to the Information Provided in Figure 18