Prior to international trade, the price of good X is lower in ...

[pepyto]

Prior to international trade, the price of good X is lower in country A than in country B. This means that we know that
 
  A) country B has an absolute advantage in the production of product X.
  B) country B has a comparative advantage in the production of product X.
  C) country A has an absolute advantage in the production of product X.
  D) country A has a comparative advantage in the production of product X.

Question 2

A good with a horizontal demand curve has a demand
 
  A) with an income elasticity of demand equal to 0.
  B) with a price elasticity of demand equal to 0.
  C) with a price elasticity of demand equal to infinity.
  D) for which there are no substitutes.

[BUTTHOL369]

Answer to Question 1

D

Answer to Question 2

C

[pepyto]

Excellent

[JCABRERA33]

Gracias!