Suppose Country X produces only two goods, food and clothing. At the initial free-trade equilibrium, the country produced 40 units of food and 20 units of clothing, and it exports 10 units of food and imports 10 units of clothing. Now suppose technological innovation in Country X leads to a balanced growth while leaving the relative prices of food and clothing unchanged in the international market. Production of food in Country X rises to 50 units. If consumption of food rises to 42 units, the consumption of clothing
A. rises to 33 units.
B. declines to less than 20 units.
C. rises to more than 35 units.
D. declines to 28 units.
Answer: A
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