Economics 13.odt - Question 8 Country A has 2000 units of...

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Question 8Country A has 2000 units of labor and can produce two goods, manufactures and food. A’s producers take 2 units of labor to produce one unit of manufactures and 5 units to produce one food unit. Country B has 2500 units of labor and takes 5 units of labor to produce one unit of manufactures and 10 units to produce one unitof food. At what price of food in terms of manufactures would A and B respectively supply food? Would tradetake place in between A and B in David Ricardo’s world? How many manufactures could A supply?
5
1800

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