At what price in terms of manufactures

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Reference no: EM132110908

Country A has 1400 labor units and can produce manufactures and food. A’s producers take 1 unit of labor to produce a unit of manufactures and 7 units of labor to produce a unit of food. Country B has 1500 units of labor and takes 3 units of labor to produce a unit of manufactures and 2 units to produce a unit of food. At what price in terms of manufactures would A and B respectively supply food? Would trade take place between A and B in Adam Smith’s world? How many manufactures could A supply?

Reference no: EM132110908

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