Figure 9-5 Price of Wagons $18.5 8 5 1 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of horses within this country, given that wagons and horses are complements? a. The domestic price without trade would move closer to the world price. b. This country would switch from being an importer of wagons to an exporter of wagons. ●c. The quantity of wagons that this country imports would increase. d. The quantity of wagons that this country imports would decrease, but the country would still be an importer of wagons.

Figure 9-5 Price of Wagons $18.5 8 5 1 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of horses within this country, given that wagons and horses are complements? a. The domestic price without trade would move closer to the world price. b. This country would switch from being an importer of wagons to an exporter of wagons. ●c. The quantity of wagons that this country imports would increase. d. The quantity of wagons that this country imports would decrease, but the country would still be an importer of wagons.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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