Using the figure above,suppose with no trade Liz and Joe each produce at point A on their respective PPFs.Then,Liz suggests that they specialize and trade.She would produces only smoothies and Joe would produce only salads.Then she would sell 10 smoothies to Joe at a price of 2.5 salads per smoothie.In this scenario,
A) Liz gains 10 smoothies and 5 salads,and Joe gains 5 smoothies.
B) Liz gains 5 smoothies,and Joe gains 10 smoothies.
C) Liz gains 10 smoothies,and Joe loses 5 smoothies.
D) Liz gains 5 smoothies and 5 salads,and Joe loses 5 salads.
E) Neither of the individuals gains from trade.
Correct Answer:
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Q221: Q222: Q223: Given the information in the figure above,Joe Q227: Q228: Q231: Relative to Al,Joe has _ if Joe Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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