Principles Of Microeconomics Worksheet With Answer Key - Professor Dowell, Cosumnes River College Page 4
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4c. Predict the pattern of trade.
Brazil will produce shoes and the U.S. will produce computers. Brazil will trade their shoes to the
U.S. for computers.
d. Indicate the range of possible relative prices that would bring about this pattern of trade.
The relative price must lie between 8/5 shoes (the U.S. opportunity cost) and 5 shoes (the Brazilian
opportunity cost) per computer.
Principles of Microeconomics: Problem Set 1
Page 4
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