Pls answer. 3-parts
The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Desonia. Both countries produce potatoes and sugar, each initially (i.e., before specialization and trade) producing 12 million pounds of potatoes and 6 million pounds of sugar, as indicated by the grey stars marked with the letter A. (? Maldonia Desonia 32 32 28 29 24 24 PPF 20 20 SUGAR (Millions of pounds) SUGAR (Millions of pounds) A A 12 16 28 32 0 12 16 28 32 POTATOES (Millions of pounds) POTATOES (Millions of pounds) Maldonia has a comparative advantage in the production of , while Desonia has a comparative advantage in the production of . Suppose that Maldonia and Desonia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of potatoes and million pounds of sugar. Suppose that Maldonia and Desonia 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 4 million pounds of potatoes for 4 million pounds of sugar. This ratio of goods is known as the price of trade between Maldonia and Desonia.Note: Dashed drop lines will automatically extend to both axes. Maldonia 32 28 Consumption After Trade 24 20 SUGAR (Millions of pounds) 16 12 PPF 8 A 12 18 20 24 28 32 POTATOES (Millions of pounds) The following graph shows the same PPF for Desonia as before, as well as its initial consumption at point A.As you did for Maldonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption after trade. Desonia 32 28 Consumption After Trade 24 PPF 20 SUGAR (Millions of pounds) 16 12 8 12 18 20 24 28 32 POTATOES (Millions of pounds) True or False: Without engaging in international trade, Maldonia and Desonia would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) O True O False