What if the data in Table 18-2 changed from (1, 2; 3, 4) to (1, 2; 2,

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What if the data in Table 18-2 changed from (1, 2; 3, 4) to (1, 2; 2, 4)? Show that all trade is killed off. Use this to explain the adage "Vive la difference!" (freely translated as "Let diversity thrive!") . Why do the largest gains in trade flow to small countries whose pretrade prices are very different from prevailing world prices?
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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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