Home » B) A and B satisfy the same kinds of desires (like tea and coffee), and there is a shift in tastes away from A and towards B. c) A is a normal good,…

B) A and B satisfy the same kinds of desires (like tea and coffee), and there is a shift in tastes away from A and towards B. c) A is a normal good,…

B) A and B satisfy the same kinds of desires (like tea and coffee), and there is a shift in tastes away from A and towards B. c) A is a normal good, while B is an inferior good. Incomes of all consumers in this market rise. D) A and B are complements. A) What is the opportunity cost of producing one more winter hat in the US? In Russia? B) What is the opportunity cost of producing one more bushel of wheat in the US? In Russia? C) Which country has a comparative advantage in winter hats? In wheat? D) If the US decides to produce one less winter hat and Russia decides to produce one more winter hat, what should happen to wheat production? Show that you understand by filling in the following table. What are the gains from specialization here? E) If the exchange rate were 1,000 rubles/$US, would mutually beneficial trade occur? If yes explain. If no, then which direction would the exchange rate move? F) If the exchange rate were 100 rubles/$US, would mutually beneficial trad

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