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Question 3 (10 points) If the opportunity cost for the US was 1 shoe = 10 sweaters and Canada's opp cost was 1 shoe =
Question 3 (10 points) If the opportunity cost for the US was 1 shoe = 10 sweaters and Canada's opp cost was 1 shoe = -20 sweaters. Who should be the seller and buyer of shoes? What would be the terms of trade here? Would there be trade for 1 shoe = 5 sweaters, why or why not? Question 4 (10 points) If there is an increase in the supply and decrease in demand for the same product and at the same time then: A. Sales are indeterminate. B. Price is indeterminate. C. Both are indeterminate. D. we cannot say anything, E. Quality will rise
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