2. Four nations are setting up trade agreements to ensure fair trading. Nation A will trade 4 yards of linen for 6 pounds of rice from Nation B. Nation C will trade 3 pallets of iron for 5 barrels of oil from Nation D. After much bickering, Nation A has agreed to trade 6 yards of linen for 2 barrels of oil from Nation D. If no fractional trades are allowed, show (using pictures or symbols) how Nation B can figure out how to trade with Nation C.

2. Four nations are setting up trade agreements to ensure fair trading. Nation A will trade 4 yards of linen for 6 pounds of rice from Nation B. Nation C will trade 3 pallets of iron for 5 barrels of oil from Nation D. After much bickering, Nation A has agreed to trade 6 yards of linen for 2 barrels of oil from Nation D. If no fractional trades are allowed, show (using pictures or symbols) how Nation B can figure out how to trade with Nation C.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 2CQQ

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