Canada Produces Both Lumber and Wine

Question 15
Multiple Choice

Canada produces both lumber and wine. Canada exports lumber and imports wine. The rest of the world imports Canadian lumber and exports wine to Canada. If Canada did not trade with the rest of the world, then the equilibrium price of lumber would be ________ in Canada than the rest of the world, and the equilibrium price of wine would be ________ in Canada than the rest of the world. A)lower; higher B)higher; lower C)higher; higher D)lower; lower E)the same or lower; the same or higher