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QUESTION A.1 In free trade a country will not trade if A . Autarky prices and free trade prices are the same. B . Autarky

QUESTION A.1

In free trade a country will not trade if

A. Autarky prices and free trade prices are the same.

B. Autarky prices are larger than free trade prices.

C. Autarky prices are smaller than free trade prices.

D. The absolute value of autarky prices are negatively correlated with free trade prices.

Explain your answer and use a diagram

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