Figure 9-6
The figure illustrates the market for roses in a country.
-The before-trade price of fish in Germany is $8.00 per pound.The world price of fish is $6.00 per pound.Germany is a price-taker in the fish market.If Germany allows trade in fish,then Germany will become an
A)importer of fish and the price of fish in Germany will be $6.00.
B)importer of fish and the price of fish in Germany will be $8.00.
C)exporter of fish and the price of fish in Germany will be $6.00.
D)exporter of fish and the price of fish in Germany will be $8.00.

Question

Figure 9-6
The figure illustrates the market for roses in a country. 
-The before-trade price of fish in Germany is $8.00 per pound.The world price of fish is $6.00 per pound.Germany is a price-taker in the fish market.If Germany allows trade in fish,then Germany will become an
A)importer of fish and the price of fish in Germany will be $6.00. 
B)importer of fish and the price of fish in Germany will be $8.00. 
C)exporter of fish and the price of fish in Germany will be $6.00. 
D)exporter of fish and the price of fish in Germany will be $8.00.

Quizplus · Accepted Answer

Since Germany's domestic price of fish is higher than the world price, it will import fish from other countries to take advantage of the lower price. As a result, the price of fish in Germany will decrease to the world price of $6.00 per pound. Therefore, Germany will become an importer of fish and the price of fish in Germany will be $6.00.

Figure 9-6 The Figure Illustrates the Market for Roses in a Country