Refer to the information provided in Table 18.5 below to answer the questions that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 18.5
-Refer to Table 18.5. The most that Vietnam will be willing to pay for a bushel of cashews is

Question

Refer to the information provided in Table 18.5 below to answer the questions that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 18.5 
-Refer to Table 18.5. The most that Vietnam will be willing to pay for a bushel of cashews is

Quizplus · Accepted Answer

According to the table, Cambodia is willing to trade 1 bushel of cashews for 3 lbs. of tea or 0.5 bushels of rice, while Vietnam is willing to trade 1 bushel of cashews for 5 lbs. of tea or 1.25 bushels of rice. Therefore, Vietnam values a bushel of cashews at 5 lbs. of tea. Since Vietnam is the seller in this scenario, they will not pay more than this value. Therefore, the most Vietnam will be willing to pay for a bushel of cashews is 7.5 lbs. of tea, which is equal to 1.5 times the value of 1 bushel of cashews. Thus, the best choice is C.

Refer to the Information Provided in Table 18