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Business, 08.04.2020 00:51 samanthagarcia16

Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of glasses sells for $50. When Macroland opens to trade, foreign demand for domestically produced china is strong, raising the price of a set of dishes to $125. But foreign competition reduces the demand for domestically produced glasses, so they now sell for $25 a set. Assuming workers cannot move between industries, the wages of workers producing dishes will and the wages of workers producing glasses will .

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Macroland produces dishes and glassware. Before trade, a set of dishes sells for $100 and a set of g...
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