Figure 9-5 Price of Wagons $18.5 8 5 1 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of horses within this country, given that wagons and horses are complements? a. The domestic price without trade would move closer to the world price. b. This country would switch from being an importer of wagons to an exporter of wagons. ●c. The quantity of wagons that this country imports would increase. d. The quantity of wagons that this country imports would decrease, but the country would still be an importer of wagons.

Figure 9-5 Price of Wagons $18.5 8 5 1 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the price of horses within this country, given that wagons and horses are complements? a. The domestic price without trade would move closer to the world price. b. This country would switch from being an importer of wagons to an exporter of wagons. ●c. The quantity of wagons that this country imports would increase. d. The quantity of wagons that this country imports would decrease, but the country would still be an importer of wagons.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 9P

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