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Question: suppose that spain and sweden both produce jeans and stained...

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Suppose that Spain and Sweden both produce jeans and stained glass. Spain's opportunity cost of producing a pane of stained glass is 5 pairs of jeans while Sweden's opportunity cost of producing a pane of stained glass is 11 pairs of jeans.

By comparing the opportunity cost of producing stained glass in the two countries, you can tell that   has a comparative advantage in the production of stained glass and   has a comparative advantage in the production of jeans.

Suppose that Spain and Sweden consider trading stained glass and jeans with each other. Spain can gain from specialization and trade as long as it receives more than   of jeans for each pane of stained glass it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than   of stained glass for each pair of jeans it exports to Spain.

Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Sweden and Spain to gain from trade? Check all that apply.

9 pairs of jeans per pane of stained glass

2 pairs of jeans per pane of stained glass

10 pairs of jeans per pane of stained glass

1 pair of jeans per pane of stained glass

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