Ross and Rachel need only two goods to live: food and water. The table below shows how many calories worth of food they can produce and how much clean water they can obtain in a week if they used 100% of their time for that purpose.

Food (calories) Ross 2000 Sasha 2800

Water (gallons) 20 16

9.2 (4 points) Who has the comparative advantage in each good? Justify your answer.

9.3 (10 points) Suppose that, in the absence of a market to trade goods, Ross and Rachel each allocated 50% of their time to the obtention of each good.

a) By how much would the existence of a market increase total production of each good by allowing full specialization according to comparative advantage?

b) Give an example of a trade that makes Ross and Rachel better off.