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) How many bushels of wheat
Will Foreign import?

A) 900 bushels
B) 700 bushels
C) 500 bushels
D) 300 bushels