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9. Working with Numbers and Graphs 99 The following table summarizes the combinations of goods and that two individuals, Tina and David, can each produce

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9. Working with Numbers and Graphs 99 The following table summarizes the combinations of goods and that two individuals, Tina and David, can each produce individually. Tina Y 300 0 David Y 1 150 0 150 15 1 75 37.5 75 0 30 1 0 If each person specializes in the production of the good for which they have the comparative advantage, then would specialize in the production of good Y, and would specialize in the production of good X. (Hint: Calculate the opportunity cost of producing X and Y for e Individual.) Suppose that David and Tina each specializes in the production of the good in which each has a comparative advantage Fill in the top row of the following table to indicate David's and Tina's output of each good Tina David X Y Before Trade, with Specialization Alter Trade After specialization, suppose the two agree on a price of units of good X for each unit of good Y. When the two individuals make the trade, they exchange 270 units of good X for 30 units of good . Recall that the individual who has specialized in the production of X would trade 270 units of gog X and receive 30 units of good , while the Individual who specialized in the production of good would trade so units of good and receive 270 units of good In the previous tatlo, na in the second row to indicate the amounts of good X and good Yeach individual pas atter the trade The following graph plot Tina's production possibilities frontieren in purple and David pin blue, respectively, and the second row of the previous talin, por Tiranewcombration of Xand with the per poter Tina Ting Tina alter Trade 14 0 O 36 73 100 Tina's PPF 144021525200124 300 using the second row of the previous table, plot David's new combination of X and Y With the tan point (dash symbol). ? David David's PPF David afur Trade 03 54 30 0 True or Falet This combination of and was already attainable to the individuals before the trade e True

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