Question: Is the correct answer D? Why or why not? 30. Boblandia has a comparative advantage in the production of steel but currently neither imports nor

Is the correct answer D? Why or why not?

30. Boblandia has a comparative advantage in the production of steel but currently neither imports nor exports steel. Steel is used in the domestic pmducon of cars. What is the predicted outcome if Boblandia opens to free trade in steel? a) Domestic steel production decreases. Domestic car producers pay a lower price for steel. b) Domestic steel production decreases. Domestic car producers pay a higher price for steel. 0) Domestic steel production increases. Domestic car producers pay a lower price for steel. d) Domestic steel production increases. Domestic car producers pay a higher price for steel. e) Domestic steel production increases. There is no change in the price domestic car producers pay for steel

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