Suppose the Price of Good X in Country a Is

question 6

True/False

Suppose the price of good x in country A is lower than the price of good x in country B when no trade is permitted.In the absence of transportation costs, if the supply curve for good x in the two countries is sufficiently elastic, free trade in good x implies that country B will stop producing x.

---

Definitions:

Guttation

The exudation of droplets of water from the pores of plants, typically occurring at night when root pressure is high and transpiration is low.

Soil Moisture

The amount of water present in the soil which is crucial for the growth of plants and the sustainability of terrestrial ecosystems.

Cactus Spines

Modified leaves or parts of leaves that have evolved into sharp structures to help reduce water loss and deter herbivores.

Modified

Changed or altered from its original form or function, often through natural processes, human intervention, or technological means.