5. The price of trade Suppose that Portugal and Denmark both produce rye and cheese. Portugal's opportunity cost of producing a pound of cheese is 5 bushels of rye while Denmark's opportunity cost of producing a pound of cheese is 10 bushels of rye. By comparing the opportunity cost of producmg cheese in the two countries, you can tell that Y has a comparative advantage in the production of cheese and V has a comparative advantage in the production of rye. Suppose that Portugal and Denmark consider trading cheese and rye with each other. Portugal can gain from specialization and trade as long as it receives more than V of rye For each pound of cheese it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than V of cheese For each bushel of rye it exports to POItugal. Based on your answer to the last question, which of the following prices of trade (that is, price oir cheese in terms of rye) would allow both Denmark and Portugal to gain from trade? Check all that apply. 9 bushels of rye per pound of cheese 1 bushel of we per pound of cheese 3 bushels of rye per pound of cheese 8 bushels of rye per pound of cheese