Assume the following information:
If the two countries specialize in the production of that commodity in which they have a comparative advantage, and trade their surplus at a price of 1.5 bushels of grain for one bolt of cloth, how many bushels of grain and bolts of cloth will be consumed by Country A and Country B? Assume that Country A will consume the same amount of cloth as in the no trade situation.

Question

Assume the following information:
  If the two countries specialize in the production of that commodity in which they have a comparative advantage, and trade their surplus at a price of 1.5 bushels of grain for one bolt of cloth, how many bushels of grain and bolts of cloth will be consumed by Country A and Country B? Assume that Country A will consume the same amount of cloth as in the no trade situation.

Quizplus · Accepted Answer

The Answer of Assume the following information:
  If the two countries specialize in the production of that commodity in which they have a comparative advantage, and trade their surplus at a price of 1.5 bushels of grain for one bolt of cloth, how many bushels of grain and bolts of cloth will be consumed by Country A and Country B? Assume that Country A will consume the same amount of cloth as in the no trade situation.

Assume the Following Information