Each diagram presents the production possibility curves for two economies, X and Y, that make food and clothes. In which diagram would both economies gain by specialising in the good for which they have comparative advantage and trading at an exchange rate of 1 unit of clothes to 1.5 units of food?
- A[IMAGE:9708_s11_qp_12_p7_diagram_3]
- B[IMAGE:9708_s11_qp_12_p7_diagram_4]
- C[IMAGE:9708_s11_qp_12_p7_diagram_5]
- D(diagram D)