Answer to Question #245412 in Microeconomics for Rana

Question #245412

Sally can make 8 cups of soup per hour or 20 crackers per hour. Harry can make 10 cups of soup per hour or 30 crackers per hour. Can Sally and Harry gain from trade? If so, what is the range of prices of crackers for soup at which they would both find trade advantageous? 


1
Expert's answer
2021-10-02T10:49:19-0400

Yes. More than 2.5 crackers per cup of soup but less than 3 crackers per cup of soup.



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