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Business, 11.02.2021 21:40 taniyasmith
The before-trade domestic price of tomatoes in the United States is $500 per ton. The world price of tomatoes is $400 per ton. The U. S. is a price-taker in the tomatoes market. If trade in tomatoes is not allowed, the price of tomatoes in the United States:
a. could increase or decrease or be unaffected; this cannot be determined.
b. will increase, and this will cause consumer surplus to decrease.
c. will be unaffected, and consumer surplus will be unaffected as well.
d. will decrease, and this will cause consumer surplus to increase.
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The before-trade domestic price of tomatoes in the United States is $500 per ton. The world price of...
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