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Two goods: cloth and wine; two countries A and B. Suppose that the autarky relative price of cloth in country A is 1.2 and in country B is 2.5. Suppose cloth is on horizontal axis and wine on the vertical. If the relative trade price of cloth is 2, what is the trade possibility frontier for country A.

A) Slope is 1.2 and goes through country A's PPF horizontal/cloth axis point

B) Slope is 2.5 and goes through country A's PPF horizontal/cloth axis point

C) Slope is 2 and goes through country A's PPF horizontal/cloth axis point.

D) Slope is 2 and goes through country A's PPF vertical/wine axis point

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