Use the Information Below to Answer the Following Questions

question 31

Multiple Choice

Use the information below to answer the following questions.
Fact 2.3.1
In an eight- hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter.In an eight- hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
-Given Fact 2.3.1, Andy and Rolfe

• A)can gain from trade if Andy specializes in bread production and Rolfe specializes in butter production.
• B)can trade, but only Rolfe will gain.
• C)cannot gain from trade.
• D)can trade, but only Andy will gain.
• E)can gain from trade if Andy specializes in butter production and Rolfe specializes in bread production.

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Definitions:

Buyers

Individuals or entities that make purchases of goods and services either for personal use, resale, or use in production.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price in a given period of time.

Quantity Supplied

The measure of goods or services that producers intend and are able to put on the market at a chosen price for a specified duration.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers.