Suppose that the pre-trade price ratio is 2 grain:5 hardware and that the international terms of trade are 3 grain:5 hardware. Which commodity will the country in question export? Why? What will happen to production in the country under the Classical assumptions? Why?

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The Answer of Suppose that the pre-trade price ratio is 2 grain:5 hardware and that the international terms of trade are 3 grain:5 hardware. Which commodity will the country in question export? Why? What will happen to production in the country under the Classical assumptions? Why?

Suppose That the Pre-Trade Price Ratio Is 2 Grain:5 Hardware