The before-trade price of fish in Denmark is $10.00 per pound. The world price of fish is $6.00 per pound. Denmark is a price-taker in the fish market. If Denmark begins to allow trade in fish, its consumers of fish will become

Question

Johnny Collier

Mathematics

4 May, 20:14

The before-trade price of fish in Denmark is $10.00 per pound. The world price of fish is $6.00 per pound. Denmark is a price-taker in the fish market. If Denmark begins to allow trade in fish, its consumers of fish will become

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Answers (2)

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Tristan Frost · Answer 1

Step-by-step explanation:

The before-trade price of fish in Denmark is $10.00 per pound.

The world price of fish is $6.00 per pound.

If Denmark begins to allow trade in fish, the price of fish in Denmark will become $6.00, which is cheaper than previous $10.00. Thus, consumers will be better off. However producers of fish in Denmark will lose, because there is a $4 difference.

Giancarlo Campbell · Answer 2

Answer: reduced