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In 14 0/ 153 Figure: The Production Possibility Frontiers for Jackson and Tahoe Units of Jackson Units of Tahoe wheat wheat 225 225 200 200

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In 14 0/ 153 Figure: The Production Possibility Frontiers for Jackson and Tahoe Units of Jackson Units of Tahoe wheat wheat 225 225 200 200 175 175 150 150 125 125 100 100 75 75 50 25 25- 50 75 100 125 150 175 200 25 50 75 100 125 150 175 20 Units of cattle Units of cattle Use Table above. In autarky, Jackson produces and consumes 30 head of cattle and 80 kilograms of wheat, while Tahoe produces and consumes 80 head of cattle and 60 kilograms of wheat. If the two countries engage in international trade and specialize completely and if the price of 1 head of cattle equals the price of 2 kilograms of wheat, world production of cattle will: O remain constant. increase by 90 head. increase by 120 head. O decrease by 30 head

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