Alice Betty Lemonade (in pitchers) Pizzas Lemonade (in pitchers) Pizzas Without
ID: 1101758 • Letter: A
Question
Alice
Betty
Lemonade (in pitchers)
Pizzas
Lemonade (in pitchers)
Pizzas
Without Trade
Production and Consumption
200
100
180
180
With Trade
Production
400
0
0
300
he values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. If they do specialize, Alice will trade 193 pitchers of lemonade to Betty in exchange for 110 pizzas. What are Alice's gains from trade?
___________Pitchers of Lemonade __________Pizzas
Alice
Betty
Lemonade (in pitchers)
Pizzas
Lemonade (in pitchers)
Pizzas
Without Trade
Production and Consumption
200
100
180
180
With Trade
Production
400
0
0
300
Explanation / Answer
Alice gains 207 pitchers of lemonade and 110 pizzas, while Betty gains 193 pitchers of lemonade and 190 pizzas.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.