Exhibit 29-2 -Suppose the Pretrade Relative Price of Two Goods in Country

Exhibit 29-2
-Suppose the pretrade relative price of two goods in country X is 2 and the pretrade relative price of two goods in country Y is 4. The posttrade relative price will settle somewhere between 2 and 4 depending on

A) the level of wages in the two countries.
B) the level of demand in the two countries.
C) the opportunity cost of production in the two countries.
D) the level of labor productivity in the two countries.
E) which country has the absolute advantage.