Let's see if we can come up with a trade that would helpboth of these"nations". Irons Islands has a PPF of Y = -10X + 100, and Winterfell has a PPF of Y = -(1/10)X+ 10. We can think of Y as fish, and X asmeat.

Draw the PPFs for the two sides.

Who has the absolute advantage in y? How about in x?

Make a comparative advantage table for the goods.

Using the table, who will specialize in what, and how do you know?

A raven comes in from the Iron Islands and unfortunately half of it has gotten torn off by Little Finger and all it says is ".... Winterfell trades 10 pounds of meat." If you are Winterfell, and you are going to be giving up 10 pounds of meat, how many fish do you need back in return to be at least as well off? That is, you must remain on the PPF.

After finding this number, Winterfell sends the followingreply back. "Winterfell trades 10 pounds of meat for 10 pounds of fish from the Iron Islands." Would both sides agree to this trade? Why or why not and show your work.