This problem is based on the Ricardian Model. Assume that 2 countries, Gryffindo

Question

This problem is based on the Ricardian Model. Assume that 2 countries, Gryffindor and Slytherin, use troll labor to produce 2 goods, apples and candy. Use the information below to calculate the numbers instead of "?" marks in the Table. Which country has a comparative advantage in candy and why? Suppose that in the trade equilibrium PA/Pc = 1.2. Which good will each country export? For each country, calculate the real wage in terms of candy and in terms of apples. For each country, compare the values you obtained in part (d) with the real wage in tem1s of either good in the no-trade equilibrium. Do trolls in each country gain from trade?

Explanation / Answer

what are Pa,Pc..sryy..:/ plss rate

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.