Question: In a two-good world (goods X and Y), consider the following information for (small) country I, which is engaged in trade: (a) What is the

In a two-good world (goods X and Y), consider the following information for (small) country I, which is engaged in trade:

(a) What is the volume of trade and the trade pattern for country I in 2005? In 2010? In 2015?
(b) What type of production effect occurs between 2005 and 2010? Between 2010 and 2015? Explain.
(c) What type of consumption effect occurs between 2005 and 2010? Between 2010 and 2015? Explain.
(d) What is the "net effect" on trade of this country's growth between 2005 and 2010? Between 2010 and 2015? Explain.

2015 140units 86 units 2005 2010 of good X 100 units 60 units 80 units on 120 units Production of good Y Consumption of good X Consumption of good Y 66 units 92 units 92 uns 10 units 70 units80 units 10 unts

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