Assume Saudi Arabia can produce 4 units of good X or 3 units of good Y. Tunisia can produce 5 units of good X or 8 units of good Y. What would be the terms of trade between Saudi Arabia and Tunisia for 1 unit of good Y?
A. Between 5/8 and 4/3 units of X.
B. Between 4 and 8 units of X.
C. Between 3 and 5 units of X.
D. Between 3/4 and 8/5 units of X.
Answer: A
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