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Assume that production exhibits increasing opportunity costs. Australia is land abundant and India is labor abundant. Wheat is land intensive relative to textiles. Graphically demonstrate

Assume that production exhibits increasing opportunity costs. Australia is land abundant and India is labor abundant. Wheat is land intensive relative to textiles.

Graphically demonstrate the pre-trade and post-trade equilibrium in Australia AND India. Find and Label the trade triangles. Note: Please put wheat in the x-axis. Must explain why you have different prices in the two countries in autarky.

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