Below Is Production Possibilities Data for the Countries of Mental

Multiple Choice

Below is production possibilities data for the countries of Mental and Etheric.

-Refer to the information above to answer this question.Suppose that the two countries,who were producing at combination D before trade,now specialize and engage in free trade and establish the terms of trade at 1 unit of rice cake = 1.5 units of soya milk.If Etheric exports 30 million units of rice cakes to Mental,what will be the gains from trade for each country?

A) Mental gains 30 million units of rice cakes and Etheric gains 45 million units of soya milk.
B) Mental gains 45 million units of rice cakes and Etheric gains 30 million units of soya milk.
C) Mental gains 15 million units of soya milk and Etheric gains 45 million units of soya milk.
D) Mental gains 15 million units of soya milk and Etheric gains 5 million units of soya milk.
E) Mental gains 15 million units of soya milk and Etheric gains 5 million units of rice cakes.