Honduras's PPF Brazil's PPF 10 10 Post-Trade Consumption Post-Trade Consumption Co Bananas (in tons per day) co Bananas (in tons per day) Co N N 2 3 4 5 6 Steel (in tons per day) 7 8 9 10 2 3 4 5 6 8 9 Steel (in tons per day) 7 10 Suppose Brazil and Honduras decide to trade. Each country specializes in producing the good for which it has a What will each country produce? comparative advantage. Honduras will produce bananas, and Brazil will produce steel. Brazil will produce both goods. Honduras will produce both goods. Honduras will produce steel, and Brazil will produce bananas. Suppose that the terms of trade are set at 6 tons of bananas Place the points on each graph to label the post-trade equals 4 tons of steel. After specialization, Honduras consumption in each country. continues to consume 2 tons of bananas per day and Brazil continues to consume 5 tons of steel per day