The Following Figure Shows the Demand Curve, D, and Supply

The following figure shows the demand curve, D, and supply curve, S, of ballpoint pens in Lithasia. The world price of pens is $2.

-Refer to the figure above.If Lithasia opens up to free trade,then which of the following statements is true?

A) The domestic production of pens in Lithasia will increase.
B) The domestic price of pens will increase.
C) Lithasia will start exporting pens.
D) Lithasia will start importing pens.

Correct Answer:

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