If a Nation Imports a Good That Can Be Domestically

question 34

Multiple Choice

If a nation imports a good that can be domestically produced, what happens to the quantity consumed of the good and why?

• A) The quantity consumed decreases because the market price increases.
• B) The quantity consumed increases because the market price decreases.
• C) The quantity consumed remains constant because the price is unchanged.
• D) The quantity consumed increases because the market price increases.
• E) The quantity consumed decreases because the market price decreases.