SCENARIO: RELATIVE PRICES AND TRADE LEVELS

Multiple Choice

SCENARIO: RELATIVE PRICES AND TRADE LEVELS
Home has a comparative advantage in wheat, and Foreign has a
Comparative advantage in cloth.Once trade occurs, Home produces
1,000 bushels of wheat, and Foreign produces 1,000 yards of cloth.The
Following table shows the amount of wheat that Home is willing to supply
And Foreign is willing to buy at various international prices.

(Scenario: Relative Prices and Trade Levels) What is the international
Price of wheat?

A) 1 yard/bushel
B) 3 yards/bushel
C) 5 yards/bushel
D) 7 yards/bushel