Consider the following conditions a, b, and c and answer the questions that follow:(a) There are two countries ‘A’ and ‘B’. ‘A’ produces 500 tonnes of wheat by employing 200 labourers. ‘B’ produces 1,000 tonnes of wheat by employing 300 labourers.(b) Country ‘C’ produces 300 kg of tea and ‘D’ produces 500 kg of coffee. ‘C’ does not produce coffee and ‘D’ does not produce tea.(c) Country ‘E’ has expertise in water engineering and agriculture. Country ‘F’ has expertise in metro-making.Will trade take place between C and D in condition (b)?

Consider the following conditions a, b, and c and answer the questions

1.	Consider the following conditions a, b, and c and answer the questions that follow:(a) There are two countries ‘A’ and ‘B’. ‘A’ produces 500 tonnes of wheat by employing 200 labourers. ‘B’ produces 1,000 tonnes of wheat by employing 300 labourers.(b) Country ‘C’ produces 300 kg of tea and ‘D’ produces 500 kg of coffee. ‘C’ does not produce coffee and ‘D’ does not produce tea.(c) Country ‘E’ has expertise in water engineering and agriculture. Country ‘F’ has expertise in metro-making.Will trade take place between C and D in condition (b)?
Answer» Yes, trade will take place between C and D in condition (b) because C country produces tea and D country produces coffee. Since they produce different products – tea and coffee, they will exchange their products through trade.