Suppose That the Following Table Shows Autarkic Production and Consumption

Question 29

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Suppose that the following table shows autarkic production and consumption in Country A and in Country B. Suppose that the following table shows autarkic production and consumption in Country A and in Country B. I. What are the autarkic prices of wheat and cloth in each country? II. Suppose the indifference curves of the two countries are identical. Will trade occur? III. Suppose the indifference curves of the two countries are NOT identical, with Country A showing a marked preference for wheat and Country B a marked preference for cloth. Under these conditions, will trade occur? I. What are the autarkic prices of wheat and cloth in each country?
II. Suppose the indifference curves of the two countries are identical. Will trade occur?
III. Suppose the indifference curves of the two countries are NOT identical, with Country A showing a marked preference for wheat and Country B a marked preference for cloth. Under these conditions, will trade occur?

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