Counties A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another.The citizens of country A have to give up one unit of food to gain two units of textiles,while the citizens of country B have to give up one unit of textiles to gain two units of food.Their production possibilities curves are shown. 
Under the theory of comparative advantage,if free trade is allowed,the market clearing price (or exchange rate if you will) between food and textiles will be
Definitions:
Industry Supply Curve
The industry supply curve represents the total quantity of goods that producers in a market are willing and able to sell at different prices, assuming all other factors constant.
Output
The cumulative production of goods or services by a corporation, industry, or the entire economy.
Supply Curve
A graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell at that price.
Market Demand
The total amount of a product or service that all consumers in a market are willing and able to purchase at various prices.
Q12: Who benefits from debt-for-equity swaps?<br>A)The creditor bank<br>B)The
Q17: "These Ready Rider shock absorbers cushion and
Q22: Which of the following is NOT a
Q29: While computers do have a tremendous impact
Q53: What is defined as the series of
Q65: The massive privatization that is currently taking
Q68: Consider a fixed for fixed currency swap.The
Q76: Which of the following is a translation
Q96: Consider a dentist and a 14-year old
Q107: From a communications model perspective,the salesperson in