Which of the following is an outcome of trade depicted in Exhibit 4?



a. Through trading with Calvin, Wendy’s food production has declined from 10 pounds to 7 pounds per day.

b. The exchange has been unfair to Wendy because a pound of her food is more valuable than a pound of Calvin’s cloth.

c. The exchange has been unfair to Calvin because he has only 3 pounds of food, whereas Wendy has 7 pounds.

d. Wendy and Calvin each enjoy a larger combination of food and cloth than they could have produced alone.


d. Wendy and Calvin each enjoy a larger combination of food and cloth than they could have produced alone.

Economics

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