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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
(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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