Jim is haggling with a car dealer on the price of a used car. If the dealer is getting a bonus per sale made, in addition to the commission, the storekeeper's

Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:

a. destroy the rice market in both countries. b. drive X to specialize in rice and Y to specialize in tuna. c. drive Y to specialize in rice and X to specialize in tuna. d. cause both X and Y to reject international specialization. e. result in lower total output of rice and tuna.

Assume that the price-consumption curve is horizontal. What additional information does that tell you about the demand for good X and the amount people spend on it?

What will be an ideal response?