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

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4. Suppose that in the absence of trade, Home consumes nine cars and two TVs, while Foreign consumes two cars and nine TVs. Add the indifference curve for each country to the figures in Problems 2 and 3. 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 Trade

ISBN: 9781429278447

3rd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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