A change in one input price will cause the slope of the budget line to change

Refer to the tables. If these two nations specialize on the basis of comparative advantage:

Answer the question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia:

A.  Trombonia will produce beans and Latalia will produce pork.
B.  Trombonia will produce both beans and pork.
C.  Latalia will produce both beans and pork and Trombonia will produce neither.
D.  Latalia will produce beans and Trombonia will produce pork.

Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. In a market subject to monopolistic competition, a restaurant's rational response to more elastic demand is to increase its price.

Answer the following statement true (T) or false (F)