3. Gains from trade Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Rye (Bushels per hour of labor) Country Euphoria Contente Jeans (Pairs per hour of labor) 20 16 Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 milion hours per week to produce jeans, while Euphoria uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Euphora produces 15 million bushels of nye end 20 million pairs of jeans, and contente produces a million bushels of rye and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, s, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces Euphone's opportunity cost of producing 1 buchel of reis of jeans, and contente's opportunity cost of producing 1 bushel of rye is of jeans. Therefore, has a comparative advantage in the production of rye, and has a comparative advantage in the production of jeans. Suppoon that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce million bushels per week, and the country that produces jeans will produce millon air per week In the following to enter each country's production decision on the third row of the table (marked Production) Support the country that produces rye trades million bushels of rye to the other country in exchange for su million pairs of jeans In the showing table, select the amount of each good that can country exports and imports on the boxes across the row marked Trade Action and exter och country incontin of each pead on the line marked "Consumption when the two countries that not to the total production of rye was 23 million bushels per week and the total production of care se man paper we spection the total production of the has increased by million the power and the total production of asetett Because the two countrie produce more ne and more jeans under specialization, each country is able to gain from trade Cutite e guine from trade that is, the stront by which each country has increased its consumption of each good relative to the first row of the table on the following table, enter the terence the deves across the best row (marked "Increase in consumption" Nye Euphoria Contente Rye Jeans Jeans Millions of bushes apar) (line of bushes)(Millions of pairs without tree Producho 20 11 wa Trade Product BOB DUB Car Tree