Suppose the relative price of good A before trade is equal to one in the home country and two in the foreign country. If the home country is a large country and the foreign country is a small country, then the relative price of good A after trade will be equal to a.less than one b.greater than one but less than 1.5 c.1.5 d.greater than 1.5 but less than 2
Suppose the relative price of good A before trade is equal to one in the home country and two in the foreign country. If the home country is a large country and the foreign country is a small country, then the relative price of good A after trade will be equal to a.less than one b.greater than one but less than 1.5 c.1.5 d.greater than 1.5 but less than 2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the relative
a.less than one
b.greater than one but less than 1.5
c.1.5
d.greater than 1.5 but less than 2
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