Question

When all trade is prohibited in good X, the equilibrium price in the home country is PX. After free trade is instituted, the domestic country begins to import good X from the rest of the world. As a result of free trade: Group of answer choices the domestic price of good X will fall. the domestic price of good X will rise. the domestic price of good X will exceed the price in foreign countries. the domestic price of good X will be less than the price in foreign countries. the domestic producers will gain surplus at the expense of domestic consumers.

Answer 1

Explanation:

Group of answer choices the domestic price of good x will fall