Refer to Figure 17-8. If this country allows free trade in wagons,

A) consumers will gain and producers will lose.
B) consumers will lose and producers will gain.
C) both consumers and producers will gain.
D) both consumers and producers will lose.

Free Trade

An economic policy allowing unrestricted import and export of goods between countries without the imposition of tariffs, quotas, or other restrictions.

Consumers

Individuals or organizations that use goods and services generated within the economy.

Producers

Individuals or entities that create goods or services for sale or exchange in a market.