Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of jeans) would allow both Germany and Portugal to gain from trade? Check all that apply. 10 pairs of jeans per bottle of wine   17 pairs of jeans per bottle of wine   1 pair of jeans per bottle of wine   9 pairs of jeans per bottle of wine

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.