Gains From Trade
Suppose we have an economy with only two people and two commodities. Maybe they re living on an otherwise deserted island somewhere, and they can spend their time either picking bananas or catching fish. The first person, let s call her Jane, can pick 100 bananas if she spends 100 of her week picking bananas, or she can catch 50 fish if she spends 100 of her week fishing. She can also choose to spend part of her time catching fish and part of her time picking bananas. I
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