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If the United States starts to import a good that had previously been produced in the United States,

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If the United States starts to import a good that had previously been produced in the United States,

If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States
A) rises.
B) falls.
C) remains constant.
D) either remains constant or rises, depending on how whether the supply of the good stays the same or increases.
E) There is not enough information to answer the question because we need to know if the market price in the United States had been above or below the world market price before trade began.

Textbook

Essential Foundations of Economics

Edition: 7^th

Authors: Bade, Parkin

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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.

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