Q4. Suppose the technologies available to countries A and B are given by the following table: S 10 8. 20 4 Suppose that the wage rate in A, WA, equals $10 per hour; then, for mutually beneficial trade to occur, the wage rate in B, when measurered in dollars, EWn, must lie in a range from $X to $Y. Calculate X and Y and explain your answer.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Q4. Suppose the technologies available to countries A and B are given by the following table:
A.
S
10
8
T.
20
4
Suppose that the wage rate in A, WA, equals $10 per hour; then, for mutually beneficial trade to
occur, the wage rate in B, when measurered in dollars, EWn, must lie in a range from $X to $Y.
Calculate X and Y and explain your answer.
Transcribed Image Text:Q4. Suppose the technologies available to countries A and B are given by the following table: A. S 10 8 T. 20 4 Suppose that the wage rate in A, WA, equals $10 per hour; then, for mutually beneficial trade to occur, the wage rate in B, when measurered in dollars, EWn, must lie in a range from $X to $Y. Calculate X and Y and explain your answer.
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