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If the world relative price lies somewhere between the autarky relative price of Home and the autarky relative price of Foreign, then: _____________

a. Only the country whose government subsidizes its exports will gain.
b. Home but not Foreign will gain from trade.
c. Neither Home nor Foreign will gain from trade.
d. Home and Foreign will both gain from trade.

Respuesta :

When the world relative price lies somewhere between the autarky relative price, D. Home and Foreign will gain from trade.

What is a relative price?

It should be noted that a relative price simply compares the price of a commodity in terms of another.

In this case, when the world relative price lies somewhere between the autarky relative price, both home and foreign will gain from trade.

Learn more about relative price on:

https://brainly.com/question/24888747

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