Table 3-34 Assume That Indonesia and India Can Switch Between Producing Rice

question 451

Multiple Choice

Table 3-34
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.
​
-Refer to Table 3-34. At which of the following prices, if any, can India and Indonesia both gain from trade?

• A)1/5 units of bananas per unit of rice.
• B)1/3 units of bananas per unit of rice.
• C)3/5 units of bananas per unit of rice.
• D)None of the above.

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