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Figure 9-5
The figure illustrates the market for tricycles in a country.
I Price
38 +
80 120 160 200 240 280 320 360 400 440 480 520 560 600
48. Refer to Figure 9-5. Bearing in mind that this country is "small," what would happen if there were a decrease in the
price of tricycle helmets within this country, given that tricycles and tricycle helmets are complements?
a. This country would switch from being an importer of tricycles to an exporter of tricycles.
b. The quantity of tricycles that this country imports would decrease, but the country would still be an importer
of tricycles.
c. The quantity of tricycles that this country imports would increase.
d. The domestic price without trade would move closer to the world price.

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c) The quantity of... View the full answer

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