The world price of grapefruits is above the price that currently prevails in cuba in the absence of trade. assuming that cuba is a small economy compared to the rest of the world, what happens if cuba decides to open up trade with the world grapefruit market?

the price of domestic cuban grapefruit for consumers

(a) decrease.

(b) increase.

(c) not change.

cuban exports of grapefruits

(a) decrease.

(b) increase.

(c) not change.

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.