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Astelia is currently a closed economy. In the market for large mirrors, the domestic equilibrium price and quantity are $500 per mirror and 20,000 mirrors
Astelia is currently a closed economy. In the market for large mirrors, the domestic equilibrium price and quantity are $500 per mirror and 20,000 mirrors per year. If Astelia became an open economy and the world price in the market was $350 per mirror, who would be the winners and losers from opening the economy? (Assume the necessary assumptions for perfect competition) A. Domestic producers are winners, domestic consumers are losers. B. Domestic producers and consumers are losers, the Government is a winner. C. Ambiguous effect on domestic producers, domestic consumers are winners. D. Domestic producers are losers, domestic consumers are winners. E. Domestic producers are losers, ambiguous effect on domestic consumers
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