Question

The before-trade price of fish in Denmark is $10.00 per pound. The world price of fish is $6.00 per pound. Denmark is a price-taker in the fish market. If Denmark begins to allow trade in fish, its consumers of fish will become

Answer 1

Explanation:

The before-trade price of fish in Denmark is $10.00 per pound.

The world price of fish is $6.00 per pound.

If Denmark begins to allow trade in fish, the price of fish in Denmark will become $6.00, which is cheaper than previous $10.00. Thus, consumers will be better off. However producers of fish in Denmark will lose, because there is a $4 difference.

Answer 2

Answer: reduced

Explanation: