The island nation of Sonorez produces 200 tons of wheat and 500 tons of corn.Munisia, its neighboring country, produces 400 tons of wheat and corn each.Sonorez would like to consume another 80 tons of wheat and is willing to give up a 100 tons of corn for it.Munisia on the other hand would like an extra 50 tons of corn and is willing to give up 100 tons of wheat.Which of the following conclusions can be drawn from this?
A)The 2 countries will not trade because they will not come to a common bargain.
B)Sonorez will trade 100 tons of wheat for extra corn.
C)Munisia will trade 100 tons of corn for extra wheat.
D)Sonorez will trade 50 - 100 tons of corn with Munisia for 80 - 100 tons of wheat.

Question

Quizplus · Accepted Answer

Both countries have complementary demands, which means they are willing to trade with each other to get what they want. Sonorez is willing to give up 100 tons of corn for an extra 80 tons of wheat, while Munisia is willing to give up 100 tons of wheat for an extra 50 tons of corn. Therefore, the best choice is D, where Sonorez will trade 50-100 tons of corn with Munisia for 80-100 tons of wheat. It is important to note that the exact amount of corn and wheat traded will depend on the negotiated terms of the trade agreement.

The Island Nation of Sonorez Produces 200 Tons of Wheat