John Stuart Mill's theory of reciprocal demand best applies when trading partners:
A) Are of equal size and importance in the market
B) Produce under increasing cost conditions
C) Partially specialize in the production of commodities
D) Have similar taste and preference levels

Question

Quizplus · Accepted Answer

Mill's theory of reciprocal demand is most applicable when trading partners are of equal size and importance, as it emphasizes the mutual demand for each other's goods, influencing the terms of trade.

John Stuart Mill's Theory of Reciprocal Demand Best Applies When