Explain briefly but clearly if the following statement is true, false or uncertain: The common equilibrium relative price of the two goods after trade can not lie outside the range bonded by the autarky (before trade) price ratios in the two countries

Explain briefly but clearly if the following statement is true, false or uncertain: The common equilibrium relative price of the two goods after trade can not lie outside the range bonded by the autarky (before trade) price ratios in the two countries

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter34: World Trade Equilibrium

Section: Chapter Questions

Problem 11E

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