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Solve clearly 5. The price of trade Supposn that Greece and Denmark both produce rye and wine, Greece's opportunity cost of producing a bottle of

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Solve clearly

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5. The price of trade Supposn that Greece and Denmark both produce rye and wine, Greece's opportunity cost of producing a bottle of wine is 4 bushels of rye while Denmark's opportunity cost of producing a bottle of wine is 10 bushels of mye. By comparing the opportunity cost of producing wine in the two countries, you can tell that That a comparative advantage in the production of wine and has a comparative advantage in the production of me; Suppose that Greece and Denmark consider trading wine and rye with each other Greece can gain from specialization and trade as long as it referees more than "of rye for each bottle of wine it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than of wine for each bushel of rye it exports to Greece. Biked on your anwer to the last question, which of the following prices of trade (that is, price of wine in terms of rye) would allow both Denmark and Greece to gain from trade? Check all that apply. 9 bushels of rye per bottle of wine 1)'7 bushels of rye per bottle of wine 0 2 bushels of ryn per bottle of wine 16 bushe's of re per bottle of wine

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