The Next Questions Refer to the Following

Multiple Choice

The next questions refer to the following.
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
-If by international treaty the ratio of the price of services to the price of goods was held at 1.5,then

A) neither country would benefit from trade
B) both countries will benefit from trade
C) only Canada would benefit from trade; Mexico would lose
D) only Mexico would benefit from trade; Canada would lose
E) Mexico would benefit from trade; Canada would neither gain nor lose