The best explanation of the gains from trade that David Ricardo could provide was to describe only the outer limits within which the equilibrium terms of trade would fall.This is because Ricardo's theory did not recognize how market prices are influenced by:
A) Demand conditions
B) Supply conditions
C) Business expectations
D) Profit patterns

Question

Quizplus · Accepted Answer

Ricardo's theory of comparative advantage focused primarily on supply-side factors, such as production costs and resource allocation, without considering demand conditions that influence market prices.

The Best Explanation of the Gains from Trade That David