If a Country Has the Comparative Advantage in Producing Wooden

question 45

Multiple Choice

If a country has the comparative advantage in producing wooden furniture,then with free trade:

• A)the country will import wooden furniture.
• B)producer surplus in the market for wooden furniture will increase.
• C)consumer surplus in the market for wooden furniture will increase.
• D)the domestic quantity supplied will be less than the domestic quantity demanded.

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