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Please help me more with graph I keep failed Attempts :l:l:| Keep the Highest 1 l2 4. Specialization and trade When a country has a
Please help me more with graph I keep failed
Attempts :l:l:| Keep the Highest 1 l2 4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Shenandoah and Denali. Both countries produce almonds and lentils, each initially (i.e., before specialization and trade) producing 12 million pounds of almonds and 6 million pounds of lentils, as indicated by the grey stars marked with the letter A. f'\\ /'\\ K34 8/ Shenandoah Denali to N I I w M 2a 28 fr? 6' g 24 -- PPF E 24 :l :l 8 8 ,5 20 E 20 2 E .9 16 -- g 16 E E. w 12 " m 12 PPF a a '2 s '2 a " A A 5 13! 5 13K 4 4 o i i . . i i i I o I I . i i i i i o 4 s 12 1e 20 24 2e 32 o 4 a 12 1a 20 24 23 32 ALMONDS (Millions of pounds) ALMONDS (Millions of pounds) Shenandoah has a comparative advantage in the production of V , while Denali has a comparative advantage in the production of Y . Suppose that Shenandoah and Denali specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of almonds. million pounds of lentils and million pounds of Suppose that Shenandoah and Denali 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 almonds for 8 million pounds of lentils. This ratio of goods is known as the price of trade between Shenandoah and Denali. The following graph shows the same PPF for Shenandoah as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Shenandoah 's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. (9'; Shenandoah 32 28 Consumption After Trade 24 - PF'F 20 16 12 LENTILS (Millions of pounds) I(:{A 0 l | I I l | | l O 4 8 12 16 20 24 28 32 ALMONDS (Millions of pounds) The following graph shows the same PPF for Denali as before, as well as its initial consumption at point A. As you did for Shenandoah, place a black point (plus symbol) on the following graph to indicate Denali's consumption after trade. i i \\J/ Denali 32 28 Consumption After Trade 24 20 16 12 PPF LENTILS (Millions of pounds) a O 4 8 12 16 20 24 28 32 ALMONDS (Millions of pounds) True or False: Without engaging in international trade, Shenandoah and Denali would not have been able to consume at the aftertrade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) 0 True 0 FalseStep by Step Solution
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