High School

If Julia only wants to consume 10 pounds of coffee, and she agrees to trade Oscar 3 pounds of bananas in exchange for 1 pound of coffee, how many bananas does Julia gain compared to the initial situation without specialization and trade?

Answer :

Julia gains 27 pounds of bananas compared to the initial situation without specialization and trade.

What is trade?

Trade is the exchange of goods, services, and capital between two or more parties. It is one of the most important economic activities in any society. Trade is conducted through a number of different methods, such as bartering, selling, purchasing, trading, and exchanging. Although trade has been around since the beginning of civilization, it has become increasingly more complex and important in the modern economy. Trade helps to increase wealth and economic growth, as it allows people to specialize in certain areas and to access goods and services that they may not be able to produce themselves. Trade also increases competition and leads to better prices and more choice for consumers. In addition, trade can help to reduce global poverty, as it allows poorer countries to access resources and technology that they may not be able to produce or afford otherwise. This can help to boost their local economies and improve the standard of living.

To learn more about trade

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