Figure 9-6
The figure illustrates the market for roses in a country.
-The before-trade price of fish in Denmark is $10.00 per pound.The world price of fish is $6.00 per pound.Denmark is a price-taker in the fish market.If Denmark begins to allow trade in fish,its consumers of fish will become
A)better off,its producers of fish will become better off,and on balance the citizens of Denmark will become better off.
B)worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off
C)worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off.
D)better off,its producers of fish will become worse off,and on balance the citizens of Denmark will become better off

Question

Figure 9-6
The figure illustrates the market for roses in a country. 
-The before-trade price of fish in Denmark is $10.00 per pound.The world price of fish is $6.00 per pound.Denmark is a price-taker in the fish market.If Denmark begins to allow trade in fish,its consumers of fish will become
A)better off,its producers of fish will become better off,and on balance the citizens of Denmark will become better off. 
B)worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off 
C)worse off,its producers of fish will become better off,and on balance the citizens of Denmark will become worse off. 
D)better off,its producers of fish will become worse off,and on balance the citizens of Denmark will become better off

Quizplus · Accepted Answer

When Denmark allows trade, consumers benefit from the lower world price of $6.00 per pound compared to the domestic price of $10.00, making them better off. However, producers face competition from cheaper imports, making them worse off. Overall, the gains to consumers outweigh the losses to producers, making the citizens of Denmark better off on balance.

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