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The figure shows the production possibilities for Alabama and Georgia. Two graphs show the relationship between the quantity of tomatoes and quantity of peaches for
The figure shows the production possibilities for Alabama and Georgia. Two graphs show the relationship between the quantity of tomatoes and quantity of peaches for Alabama and Georgia. The graph for Alabama plots Quantity of peaches (bushels) along the horizontal axis and Quantity of tomatoes (bushels) along the vertical axis. A curve starts at 75 bushels of tomatoes and ends at 15 bushels of peaches, with a steep negative slope. Point A is marked at 25 bushels of tomatoes and 15 bushels of peaches. The graph for Georgia plots Quantity of peaches (bushels) along the horizontal axis and Quantity of tomatoes (bushels) along the vertical axis. A curve starts at 90 bushels of tomatoes and ends at 30 bushels of peaches, with a negative slope. Point B is marked at 45 bushels of tomatoes and 15 bushels of peaches. Which of the following trades will benefit both states? Georgia exports 10 bushels of peaches and imports 40 bushels of tomatoes. Georgia imports 10 bushels of peaches and exports 40 bushels of tomatoes. Georgia exports 5 bushels of peaches for 30 bushels of tomatoes. Georgia exports 5 bushels of peaches for 10 bushels of tomatoes
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