Refer to the graph shown.
We would expect that if the two countries trade with each other (and neither trades with the rest of the world):
A. Norstrilia will export both goods to Graustark, which will have a permanent trade deficit.
B. Norstrilia will export agricultural goods and Graustark will export manufactured goods.
C. Norstrilia will export manufactured goods and Graustark will export agricultural goods.
D. Graustark will export both goods to Norstrilia, which will have a permanent trade deficit.
Answer: C
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