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If a home country is exporting corn and importing bikes and if the relative price Pc/Pb is increasing, then: the home country will export less
If a home country is exporting corn and importing bikes and if the relative pricePc/Pbis increasing, then:
- the home country will export less corn.
- the home country will export more corn.
- the home country will import the same number of bikes.
- there is no change in the trade pattern for the home country.
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