Import and Export - Microeconomics

Question

If the world price is lower than the domestic autarky price of a good, then when the economy opens up to trade, the country will become an ______ of the good and the price of the good in the domestic market will ______.

A) Exporter; decrease

B) Importer; decrease

C) Exporter; increase

D) Importer; increase

Thank you for the help.

Answer 1

We will import the good and consumers will pay less for the good