5. Suppose that in the absence of trade, Home consumes two cars and nine TVs, while Foreign...

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5. Suppose that in the absence of trade, Home consumes two cars and nine TVs, while Foreign consumes nine cars and two TVs. Add the indifference curve for each country to the figures in Problems 3 and 4. Label the production possibilities frontier (PPF), indifference curve (U1), and the no-trade equilibrium consumption and production for each country.

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International Economics

ISBN: 9781429278423

4th Edition

Authors: Robert C. Feenstra; Alan M. Taylor

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