Homework $($Ch $03)$

Suppose that Yosemite and Denali agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange $6$ million pounds of almonds for $6$ million pounds of basil. This ratio of goods is known as the price of trade between Yosemite and Denali.

The following graph shows the same PPF for Yosemite as before, as well as its initial consumption at point A$.$ Place a black point $($plus symbol$)$ on the graph to indicate Yosemite's consumption after trade.

Note: Dashed drop lines will automatically extend to both axes.

$(?)$

Yosemite