Suppose that both Boatland and Farmland produce fish and wheat with constant opportunity costs. Boatland can produce either 10 tons of fish and no wheat, or 10 tons of wheat and no fish, or any combination in between. Farmland can produce either 8 tons of wheat and no fish, or 4 tons of fish and no wheat, or any combination in between.

a. Draw Boatland and Farmland production possibility frontier in two separate diagrams, with fish on the horizontal axis and wheat on the vertical axis.

e. Is it possible for Boatland to consume 5 tons of fish and 7 tons of wheat? Label this point B in your diagram. Is it possible for Farmland at the same time to consume 5 tons of fish and 1 tons of wheat? Label this point D in your diagram. Indicate the trading price if points B and D are the actual consumption bundles after trade. Indicate the gains from trade for both lands.