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? Shenandoah Congaree 80 80 70 70 80 PPF 50 LENTILS (Millions of pounds) LENTILS (Millions of pounds) PF 20 A 10 10 20 30

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? Shenandoah Congaree 80 80 70 70 80 PPF 50 LENTILS (Millions of pounds) LENTILS (Millions of pounds) PF 20 A 10 10 20 30 40 50 60 70 80 20 30 40 50 70 PEAS (Millions of pounds) PEAS (Millions of pounds) Shenandoah has a comparative advantage in the production of V, while Congaree has a comparative advantage in the production of . Suppose that Shenandoah and Congaree 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 peas and million pounds of lentils. Suppose that Shenandoah and Congaree 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 20 million pounds of peas for 20 million pounds of lentils. This ratio of goods is known as the price of trade between Shenandoah and Congaree. 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

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