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How do equity considerations influence trade prices?
If the opportunity costs are 1 hunch punch for 0.5 pizza rolls and 1 pizza roll, what is a fair trade price?
Given the opportunity costs of 1 hunch punch as 0.5 pizza rolls for Producer A and 1 pizza roll for Producer B, what is a fair trade price?
If the opportunity cost of producing 1 hunch punch is 0.5 pizza rolls for Producer A and 1 pizza roll for Producer B, what is the acceptable range for the price of trade?
How does scarcity affect trade decisions?
If Producer A has a comparative advantage in hunch punch and Producer B in pizza rolls, what is the likely outcome of trading hunch punch for pizza rolls?
What role do equity considerations play in setting trade prices?
Why must the price of trade lie between the opportunity costs of the two producers?
How might an increase in the supply of hunch punch affect the price of trade?
Under what conditions is trade beneficial for both partners?