Suppose that the terms of trade between Mexico and the US are 3.5 tons of avocados in

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Suppose that the terms of trade between Mexico and the US are 3.5 tons of avocados in exchange for 1 ton of soybeans. Would the two countries be willing to trade at this relative price? Explain.

	Production Alternatives (Tons) US Production Possibilities
Product	R	S	T	U	V
Avocados	0	30	33	60	90
Soybeans	30	20	19	10	0

	Production Alternatives (Tons) Mexico’s Production Possibilities
Product	A	B	C	D	E
Avocados	0	20	24	40	60
Soybeans	15	10	9	5	0

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Essentials of Economics

ISBN: 978-1259235702

10th edition

Authors: Bradley Schiller, Karen Gebhardt

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Posted Date: Feb 24, 2024 12:45 AM

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Suppose that the terms of trade between Mexico and the US are 3.5 tons of avocados in

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Essentials of Economics

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