In a Single Year,Argentina Can Raise 100 Tons of Beef

question 40

Multiple Choice

In a single year,Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Venezuela can raise 50 tons of beef or produce 750 boxes of tulips.When the two countries begin trading beef for tulips,we expect the price of beef in Venezuela:

• A)to fall.
• B)to rise.
• C)to remain at the autarky price.
• D)to be 15 boxes of tulips.

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