(2 marks) Consider a three-panel trade diagram that incorporates a per unit cost of transferring goods from the exportin

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(2 marks) Consider a three-panel trade diagram that
incorporates a per unit cost of transferring goods from the
exporting country to the importing country. Assuming the
exporter pays the transfer costs, which of the following will
happen when the per unit transfer cost increases?
Question 39 options:
Quantity demanded in the importing country will fall and
quantity supplied in the exporting country will fall
Price in the exporting country will rise
Quantity supplied in the importing country will fall and
quantity demanded in the exporting country will rise
Quantity of trade will increase
Quantity demanded in the exporting country will fall and
quantity supplied in the exporting country will fall