After NAFTA was signed, the United States allowed more tomatoes to be imported from Mexico. What happened to the price of tomatoes in the United States when the United States allowed more tomatoes to be imported?
What will be an ideal response?
Question 2
According to the ________, as long as property rights are clearly defined, two agents can always bargain to reach the efficient outcome.
A) Coase theorem
B) Ricardian theory on rent
C) revenue-equivalence theorem
D) envelope theorem