Answer
The price of the trade lies between the opportunity costs of the two traders.
Work Step by Step
In prices outside of this range, either party will prefer buying or selling over trading because it makes more economic sense.
Principles of Microeconomics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516590X
ISBN 13:
978-1-28516-590-5
Chapter 3 - Part I - Interdependence and the Gains from Trade - Questions for Review - Page 59: 5
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