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(iii) If Kenya exchanges 8T for 8W with Lesotho, (a) How much does Kenya gain in terms of wool? And how many hours does Kenya

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(iii) If Kenya exchanges 8T for 8W with Lesotho, (a) How much does Kenya gain in terms of wool? And how many hours does Kenya save? Explain [2 marks] (b) How much does Lesotho gain in terms of Wool? Explain [2 marks] (c) What is the range of mutually beneficial trade? Explain [3 marks]QUESTION 3 Use the table below to answer the questions that follow Output Kenya Lesotho Tea (ton/hr) 8 2 Wool (ton/hr) 6 4 (i) Identify the commodity in which Kenya and Lesotho have an absolute advantage and absolute disadvantage. Explain your answer. [4 marks] (ii) Indicate and explain the commodity of each nation's comparative advantage and disadvantage. No marks will be awarded if you do not show your workings. [4 marks]

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