08. Given the above set of production possibilities and consumption (trade) possibilities frontiers, what happens to the prices of wine and/or cloth in each country as a result of trade? The price of wine increases from 1/3 in Portugal and decreases from 1 in England, to 2 yard/bottle in both The price of cloth increases from 3 in Portugal and decreases from 1 in England, to 2 bottles/yard in both The price of wine decreases from 1/3 in Portugal and increases from 1 in England, to % yard/bottle in both The price of cloth decreases from 3 in Portugal and increases from 1 in England, to 1 bottle/yard in both None of the above

08. Given the above set of production possibilities and consumption (trade) possibilities frontiers, what happens to the prices of wine and/or cloth in each country as a result of trade? The price of wine increases from 1/3 in Portugal and decreases from 1 in England, to 2 yard/bottle in both The price of cloth increases from 3 in Portugal and decreases from 1 in England, to 2 bottles/yard in both The price of wine decreases from 1/3 in Portugal and increases from 1 in England, to % yard/bottle in both The price of cloth decreases from 3 in Portugal and increases from 1 in England, to 1 bottle/yard in both None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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