49) according to the graph shown, if this economy were

49) according to the graph shown, if this economy were to open to trade, consumers would

Solution

D)

Because the prices in that economy were higher than world price, In open economy what happens is that, The price of goods will eventually be at world price. This is not just the███████, ██████ ██████ █████████████████ ██████████████████ ███████ █████████ █████ ██████████ ████ █████████████ ██████ █████████████ ███████ █████ ████████ ████ █████████████ █████████████████ █████████ ████ ███████ ██ ██████████████████ █████ ██████████████ ██████ ███████████ █████████ ████████ █████████████ ████████████████████████ ██████████