Suppose that if Iceland and Japan were both closed economies, the domestic price of fish would be $100 per ton in Iceland and $90 per ton in Japan. If the two countries decided to open up to international trade with each other, which of the following could be the equilibrium international price of fish once they begin trading? a. $75. b. $85. c. $95. d. $105.
Suppose that if Iceland and Japan were both closed economies, the domestic price of fish would be $100 per ton in Iceland and $90 per ton in Japan. If the two countries decided to open up to international trade with each other, which of the following could be the equilibrium international price of fish once they begin trading? a. $75. b. $85. c. $95. d. $105.
Chapter34: World Trade Equilibrium
Section: Chapter Questions
Problem 7E
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Suppose that if Iceland and Japan were both closed economies, the domestic
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Author:
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Publisher:
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