Although Domestic Consumers Gain More from Free Trade Than Domestic

Although domestic consumers gain more from free trade than domestic producers lose, the matter may not be that simple. Why might domestic producers also gain from free trade policies over those that impose tariffs on all goods?

A) because foreign producers will be even worse off
B) because domestic prices are higher under free trade than under protectionism
C) because domestic producers also consume at least some imported goods that cost less
D) because the gains from free trade are random. It is impossible to say who will get them

Correct Answer:

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