8. (LO 4) Table 10.16 shows the production possibilities for Canada and Japan. Suppose that, prior to specialization and trade, both Canada and Japan are producing combination C.

a) In Figure 10.15, draw the production possibilities curve for each country, and indicate their present output positions.

b) Suppose that the two countries specialize and trade on the basis of 1 DVD player = 1 wheat. Draw the corresponding trading possibilities curves.

c) If Canada still wishes to have 20 wheat, how many more DVDs could it have?

d) Show the new combination in Figure 10.15.

e) If Japan still wishes to have 20 DVDs, how much more wheat could it have?

f) Show the new combination in Figure 10.15.