Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 3 - Exchange and Markets - Exercises - 3.2 Markets - Page 65: 2.5a

Answer

yes

Work Step by Step

Since coffee is more valuable in the French compound, a British prisoner could sell coffee to the French at a discount, and still receive more in trade than from selling at the regular price in the British compound. In this case both the buyer and seller are better off after the trade.
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