14. In Bangladesh the opportunity cost of producing 1 ton of clothing is 1/2 ton of rice, while in Indonesia the opportunity cost of producing 1 ton of clothing is /4 ton of rice. In this situation: a) mutually beneficial trade cannot occur. b ) Bangladesh has the comparative advantage in rice production. both countries will be better off if Bangladesh produces both clothing and rice. d) Indonesia has the comparative advantage in rice production. 15. Raising an existing tariff on steel from China will: a) increase U.S. imports of Chinese steel. b) decrease total U.S. consumption of steel. c) decrease U.S. consumption of domestically-produced steel. lower the price of steel paid by U.S. consumers. Figure 1 PA Domestic Supply A P3 B Price P 2 CID World Price E Domestic Demand P1 0 Quantity of Wheat 16. Refer to Figure 1 above. This country should in the amount of )export wheat, Q1 to Q2 export wheat, Q2 to Q3 c) import wheat, Q1 to Q3 d) import wheat, Q2 to Q3 bility: Investigate