Figure 34-2

In Figure 34-2, if the United States and Mexico are negotiating to trade wheat for petroleum,

Question

Figure 34-2 ​

In Figure 34-2, if the United States and Mexico are negotiating to trade wheat for petroleum,

Quizplus · Accepted Answer

From the graph, we can see that the trade agreement is limited between 1 unit of wheat for 2/3 unit of petroleum for the United States and 1 unit of wheat for 1 1/2 units of petroleum for Mexico. Both countries must agree to a rate within this range. Choices (A) and (B) are incorrect as they do not accurately reflect the range of possible trade agreements. Choice (D) is also incorrect as it makes a specific assumption about the outcome of the trade without any evidence from the graph.

Figure 34-2 ​ In Figure 34-2, If the United States and Mexico Are

Figure 34-2 In Figure 34-2, If the United States and Mexico Are