A country signs a free trade agreement that removes tariffs on refrigerators imported from a partner country. The table shows data from the year before the agreement and the year after it.
| Measure | Year before | Year after |
|---|---|---|
| Average retail price of a refrigerator | £640 | £570 |
| Refrigerators imported from the partner country | 80,000 | 125,000 |
| Refrigerators sold by domestic producers | 150,000 | 118,000 |
Which evaluation of the effects of the agreement is best supported by the data?
Consumers are likely to gain from lower prices, while domestic refrigerator producers may lose sales to imports
Consumers and domestic producers are likely to gain because total refrigerator sales increase after the agreement
Consumers are likely to lose as imports rise, while domestic producers gain from the lower retail price
Neither group is likely to be affected because higher import sales offset lower domestic sales
85 exam-style questions on OCR GCSE Economics 4.1 Importance of international trade, covering 4.1.1 Why countries import and export and 4.1.2 Free trade agreements. Each one has a worked solution and a mark scheme showing where the marks go.