ourses Suppose that Freedonia and Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage The countries decide to exchange 8 million pounds of grain for 8 million pounds of tea. This ratio of goods is known as the price of catalog and Study Tools trade between Freedonia and Lamponia. A-Z Rental Options The following graph shows the same PPF for Freedonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the College Success Tips graph to Indicate Freedonia's consumption after trade Note: Dashed drop lines will automatically extend to both axes Career Success Tips Help Give Feedback Freedonia Consumption After Train TEA (Milions of pounds) PPP 24 GRAIN (Millions of pounds)