Consider the following scenario. Xavier and Yannis can switchbetween producing baskets and produc-
ing birdhouses. Xavier uses 8 hours to produce 1 basket and 2 hoursto produce 1 birdhouse. Yannis
uses 1.5 hours to produce 1 basket and 2 hours to produce 1birdhouse. In 24 hours, Xavier can produce
3 baskets and 12 birdhouses, and Yannis can produce 16 baskets and12 birdhouses. If they decided
to trade with one another, at which of the following prices wouldboth Xavier and Yannis gain from
trade? Justify your answer

a. 30 baskets for 15 birdhouses
b. 30 baskets for 18 birdhouses
c. 30 baskets for 24 birdhouses