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(Figure: a Country's Before and After Trade Equilibria) If the New

Question 42

Multiple Choice

(Figure: A Country's Before and After Trade Equilibria) If the new international relative price of computers increases from its pre-trade position, how will the slope of the price line change in the graph? (Figure: A Country's Before and After Trade Equilibria)  If the new international relative price of computers increases from its pre-trade position, how will the slope of the price line change in the graph?   A)  The slope will increase. B)  The slope will decrease. C)  The slope will not change but the price line will shift to the right. D)  The slope will not change but the price line will shift to the left.


A) The slope will increase.
B) The slope will decrease.
C) The slope will not change but the price line will shift to the right.
D) The slope will not change but the price line will shift to the left.

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