|Question||Suppose that Tessa buys a new machine for making jackets that enables her to make 20 jackets an hour. (She can still make only 80 caps per hour.)
a. Who now has a comparative advantage in producing jackets?
b. Can Sue and Tessa still gain from trade?
c. Would Sue and Tessa still be willing to trade 1 jacket for 15 caps? Explain your answer.