After a Country Goes from Disallowing Trade in Coffee with Other

question 118

Multiple Choice

After a country goes from disallowing trade in coffee with other countries to allowing trade in coffee with other countries,

• A)the domestic price of coffee will be greater than the world price of coffee.
• B)the domestic price of coffee will be lower than the world price of coffee.
• C)the domestic price of coffee will equal the world price of coffee.
• D)The world price of coffee does not matter;the domestic price of coffee prevails.

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