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Instructions: Manipulate numbers in the Settings window as needed to answer the following questions. You may find it helpful to click combined above the graph

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Instructions: Manipulate numbers in the Settings window as needed to answer the following questions. You may find it helpful to click "combined" above the graph window to view each country's production on a single graph. Suppose Malaysia's production possibilities include a maximum of 150 units of rice or 250 units of lumber, and Canada's production possibilities include a maximum of 250 units of rice or 200 units of lumber. Then suppose each country initially allocates 50% of its labor to producing each product. a) Total production by the two countries equals tons of rice and At of lumber. b) Now suppose that Malaysia increases the labor it allocates to lumber by 10%. Its lumber production rises by and its rice production falls by c) If Canada reallocates its labor to increase its rice production by exactly the amount that Malaysia's rice production fell, by how much must its lumber production fall? f+ 3 d) State the combined effects on total production of the reallocations in part b and c. Total production of rice changes by tons. (include a negative sign, if needed) Total production of lumber changes by 13. (include a negative sign, if needed)Comparative Advantage Malaysia & Canada In. GRAPH Each Combined MALAYSIA CANADA Lumber Lumber 280 A (35, 140) 100 B (150, 50) 70 300 Rice Rice - Production Possibilities for Malaysia Production Possibilities for CanadaSETTINGS Reset CALCULATIONS Production Possibilities Initial Production New Production Lumber Rice (0 - 320 ft3) (0 - 320 tons) Lumber Rice Lumber Rice Malaysia 280 or 70 Canada 100 or 300 Malaysia 140 35 140 35 Labor Lumber Rice Canada 50 150 50 150 (0 - 100%) (% ) Malaysia (Pt. A) 50 50 Total 190 185 190 185 Canada (Pt. B) 50 50

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