The following graph shows the Neverland's production possibilities. Neverland is a small nation. Suppose the world price of Tea is $1 per kg and the world price of Banana is $2 per kg, and Neverland decides to open up to the world market and trade. How many kgs of banana could they consume if they were to consume 10 kgs of tea? Select one: a. 8 b. 17 c. 11 d. 1 e. 12
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The graph shows the following points: - (0, 17): 0 kg of tea and 17 kg of bananas - (8, 12): 8 kg of tea and 12 kg of bananas - (12, 0): 12 kg of tea and 0 kg of bananas Show more…
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