With the "opening" of trade, the item exported experiences a(n) ________ in demand and therefore a(n) ________ in its relative (domestic) price.
A) increase, increase
B) increase, decrease
C) decrease, decrease
D) decrease, increase

Question

Quizplus · Accepted Answer

When trade opens, the demand for the exported item increases because it can now be sold to more markets. This increased demand leads to an increase in its relative (domestic) price.

With the "Opening" of Trade, the Item Exported Experiences A(n)