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With no trade, the equilibrium price of grapes is $2 per pound in Macroland and $4 per pound in Econoland. Government leaders in Macroland are negotiating a free trade agreement with Econoland to increase trade between the two countries. Who among consumers and producers is likely to support and who is likely to oppose the free trade agreement

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Those in Macroland and Econoland who would support or oppose the free trade agreement are:

  • Consumers in Econoland -  Support.
  • Producers in Econoland - Oppose.
  • Consumers in Macroland - Oppose.
  • Producers in Macroland - Support.

Who would support the free tade agreement?

Consumers in Econoland would support the agreement because they would get cheaper grapes. Producers in the nation would lose market share as a result so they would oppose it.

Producers in Macroland would love to sell more grapes to another market so they would support. Consumers in the nation would oppose because grape prices might go up.

Find out more on free trade agreements at https://brainly.com/question/8086833.

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