Answer to Question #221233 in Microeconomics for henvi

Question

1.    For a country, the domestic price of a product will equal the world price.

a.     when the domestic supply of the product increases.

b.    when the country allows free trade.

c.     when trade restrictions are imposed on the product.

d.    if the country chooses to export and not import the product.

Answer 1

b. When the country allows free trade