Global Macroeconomics Lavinia and Gerson can brew ale and lager but they are not equally as efficient at the production of each. Base on the quantity of outputs using the fixed amount of inputs for ale and lager below; Ale (output in liters) Lager (output in liters) Lavinia 20 25 Gerson 18 24 1) Determine who has an absolute advantage in ale 2) Determine who has an absolute advantage in lager 3) Determine who has a comparative advantage in ale 4) Determine who has a comparative advantage in lager 5) Should Lavinia be self-sufficient or should they specialize and trade? 6) If you answered that they should specialize, who should produce the ale? (otherwise respond "NA" 7) If the price of a good or service increases, what will happen to the quantity demanded? 8) What are the two factors that cause the relationship between prices and the quantity demanded to be negative? 9) Name three things that can cause the Demand curve to shift to the right (increase)