Each diagram presents the production possibility curves for the two economies, X and Y, as they make food and clothes. In which diagram would both economies gain if they specialised in the good in which they have comparative advantage and traded at an exchange rate of 1 unit of clothes to 1.5 units of food?
- A[IMAGE:9708_s17_qp_11_p10_diagram_4]
- B[IMAGE:9708_s17_qp_11_p10_diagram_1]
- C[IMAGE:9708_s17_qp_11_p10_diagram_2]
- D[IMAGE:9708_s17_qp_11_p10_diagram_3]