The gains from trade creation are likely to be larger for a country if

A. the supply of the imported good by the foreigners is relatively inelastic.
B. it mainly imports primary products.
C. its import demand curve is relatively elastic.
D. the country's government sufficiently subsidizes the production of its exportable goods.


Answer: C

Economics

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A. 1.5%. B. 6.67%. C. 15%. D. 22.5%.

Economics