Ask Question
4 November, 22:09

The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the previous no-trade situation, buyers of furniture in Cranolia are now better off. a) trueb) false

+2
Answers (1)
  1. 4 November, 22:21
    0
    False

    Explanation:

    In simple words, the manufacturers of furniture in the country now will have an incentive to supply their production to other countries which might give them better price for their product.

    Due to this, the supply in the domestic country for furniture will decrease with demand being stable on the same level leading to high price in domestic market.

    Thus, from the above we can conclude that the export decision is good for the economy as a whole but is not suitable for furniture buyers in the country.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers