Part 4. Economic Equations and Graphs 1. Using the data in the table, answer the following questions:

a. For which good does Canada have a comparative advantage?________

b. For which good does Italy have a comparative advantage? ___________

c. What might be a set of favorable terms of trade for the two countries?

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d. Prove that both countries would be better off in the specialization-trade case than in the no-specialization- no-trade case. _________________________________________________________