When Australia has a closed economy for flowers, a bouquet of flowers sells for $50. Assuming Australia
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When Australia has a closed economy for flowers, a bouquet of flowers sells for $50. Assuming Australia does have the comparative advantage (CA) in the production of flowers, opening up the flowers market in Australia to international trade will result in Australian consumers being better off as the price of flowers will fall to below $50. Correct this statement and provide for a brief example proving your case.
Just need to state that with CA, international trade will increase prices for domestic consumers-explain with a brief example.
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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