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Suppose that Canada and Brazil are trading manufactured goods and food. The figure to the right shows the Brazilian budget constraint. Given the axes' labels,
Suppose that Canada and Brazil are trading manufactured goods and food. The figure to the right shows the Brazilian budget constraint. Given the axes' labels, it can be ascertained that the world relative price of (1 unit of) manufactured goods is | | units of food. 100 90 80- 70 60 50 40 30 20 10 0 Brazil's budget constraint Quantity of food 0 1 2 3 45 6 7 8 9 1011 12 Quantity of manufactured goods o
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