Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.At which of the following prices would both England and Spain gain from trade with each other?
A) 16 units of bread for 16 units of cheese
B) 16 units of bread for 24 units of cheese
C) 16 units of bread for 48 units of cheese
D) England and Spain could not both gain from trade with each other at any price.

Question

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-5.At which of the following prices would both England and Spain gain from trade with each other?
A) 16 units of bread for 16 units of cheese 
B) 16 units of bread for 24 units of cheese 
C) 16 units of bread for 48 units of cheese 
D) England and Spain could not both gain from trade with each other at any price.

Quizplus · Accepted Answer

The Answer of Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
 
-Refer to Table 3-5.At which of the following prices would both England and Spain gain from trade with each other?
A) 16 units of bread for 16 units of cheese 
B) 16 units of bread for 24 units of cheese 
C) 16 units of bread for 48 units of cheese 
D) England and Spain could not both gain from trade with each other at any price.

Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese