A country has a climate that is ideal for tea, so tea is produced very cheaply and then exported. Fruit is also cultivated, but this is more expensive because the climate is less suitable. Since fruit can be sold for a higher price than tea, some of the land previously used for tea is changed over to fruit. What will certainly happen as a result?
- AThere will be an increase in specialisation by the country.
- BThere will be an increase in the imports of tea.
- CThere will be an opportunity cost of the loss of the tea production.
- DThere will be production in line with absolute advantage.