Giocattolo is a profit-maximizing firm that produces toy cars. In Italy, its home country, it enjoys unchallenged market power due to trade barriers that restrict competition. However, Giocattolo also exports toy cars to Spain, where the market is highly competitive. Given this scenario, which of the following statements is correct? Giocattolo sells toy cars at a lower price in Spain to dispose of its excess inventories. The demand that Giocattolo faces for toy cars in Spain is less elastic than in Italy. The demand that Giocattolo faces for toy cars in Italy is less elastic than in Spain