Assume the following:

John and Liya both produce food and dishes;

Constant opportunity costs;

John can produce 200 tonnes of food or 200 tonnes of dishes;

Liya can produce 800 tonnes of food or 400 tonnes dishes;

In autarky (i.e. self-sufficiency without trade) each person produces both goods and that the optimal mix before trade for John is (160) tonnes of food and (40) tonnes of dishes. For Liya, the optimal mix before trade is (600) tonnes of food and (100) tonnes of dishes.

1) What are the minimum terms of trade that each person would be willing to accept in order to trade? (2 marks)