%3Cp%20class%3D%22c1%22%3ESuppose%20that%20CAnada%20and%20Brazil%20are%20trading
ID: 2507139 • Letter: #
Question
%3Cp%20class%3D%22c1%22%3ESuppose%20that%20CAnada%20and%20Brazil%20are%20trading%0Amanufactured%20goods%20and%20food.%20The%20figure%20shows%20the%20Brazilian%20budget%0Aconstraint.%20Given%20the%20axes'%20labels%2C%20it%20can%20be%20ascertained%20that%20the%0Aworld%20relative%20price%20of%20(1%20unit%20of%20)%20manufactured%20goods%20is%20(%20%20%0A%26nbsp%3B%20a%20%26nbsp%3B%20%26nbsp%3B)%20units%20of%20food.%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3ENote%20that%20Brazilian%20food%20consmption%2C%20D%20BF%2C%20is%2050%0Aunits%20and%20its%20production%20of%20food%2C%20Q%20BF%20is%2070%20units.%20Brazil%20is%20thus%0Apoised%20to%20export%20(%20%26nbsp%3B%20%26nbsp%3B%20%26nbsp%3Bb%20%26nbsp%3B%20%26nbsp%3B%20%26nbsp%3B)%0Aunits%20of%20food%20and%20import%20(%20%26nbsp%3B%20%26nbsp%3B%20%26nbsp%3Bc%20%26nbsp%3B%20%26nbsp%3B%0A%26nbsp%3B)%20of%20manufactured%20goods%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cimg%20class%3D%22user-upload%20c2%22%20src%3D%0A%22http%3A%2F%2Fmedia.cheggcdn.com%2Fmedia%252F0eb%252F0eb92e0f-72e8-4e86-a279-0c4722610ebc%252FphpA60lTB.png%22%0Aheight%3D%22460%22%20width%3D%22819%22%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%3Cbr%20%2F%3E%3C%2Fp%3E%0AExplanation / Answer
1 unit of manufactured goods costs 10 units of food
export 20 units of food
import 2 units of manufactured goods
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