When a country allows trade and becomes an exporter of a good,
A)domestic producers become better off,and domestic consumers become worse off.
B)domestic producers become worse off,and domestic consumers become better off.
C)domestic producers become better off,but the effect on the well-being of domestic consumers is ambiguous.
D)domestic consumers become worse off,but the effect on the well-being of domestic producers is ambiguous.

Question

Quizplus · Accepted Answer

When a country exports a good, domestic producers benefit from access to larger markets and potentially higher prices, while domestic consumers may face higher prices and reduced availability of the good domestically.

When a Country Allows Trade and Becomes an Exporter of a Good