In each diagram, the production possibility curves for two economies, X and Y, are shown; they produce food and clothes. In which diagram would both economies gain if they specialised in the good for which they have comparative advantage and then traded at an exchange rate of 1 unit of clothes to 1.5 units of food?
- A[IMAGE:9708_s11_qp_13_p7_diagram_3]
- B[IMAGE:9708_s11_qp_13_p7_diagram_4]
- C[IMAGE:9708_s11_qp_13_p7_diagram_5]
- D[IMAGE:9708_s11_qp_13_p7_diagram_2]