Review the information in Figure 2.4. Choose a rate of trading cherries for apples different from the rate used in the text (15 pounds of cherries for 10 pounds of apples) that will allow you and your neighbor to benefit from trading. Prepare a table like Table 2.1 to illustrate your answer.

Data given in table 2.1

Data given in Figure 2.4

Transcribed Image Text:

Production and consumption without trade Production with trade Consumption with trade Gains from trade (increased consumption) Apples Cherries (in pounds) (in pounds) 8 20 10 You 2 12 0 15 3 Your Neighbor Apples Cherries (in pounds) (in pounds) 9 0 10 1 42 60 45 3