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An economy opens itself up to international trade. What would happen if the average global price for a good is lower than the domestic equilibrium
An economy opens itself up to international trade. What would happen if the average global price for a good is lower than the domestic equilibrium price with no government interventions? (2 points)
Domestic supply would increase as well as domestic demand. | |
Domestic supply would decrease, and domestic demand would increase. | |
Domestic quantity supplied would decrease, and domestic demand would increase. | |
Domestic quantity supplied would decrease, and domestic consumption would increase. | |
The domestic market would not be affected. |
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