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Suppose that in a year, a Canadian worker can produce 100 shirts or 20 comput- ers, while a Chinese worker can produce 100 shirts or

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Suppose that in a year, a Canadian worker can produce 100 shirts or 20 comput- ers, while a Chinese worker can produce 100 shirts or 10 computers. a. Graph the production possibilities curve for the two countries. Suppose that without trade, the workers in each country spend half their time producing each good. Identify this point in your graph. (5) b. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graph. Which country would benefit from trade? Explain. (10) c. Explain at what price of computers (in terms of shirts) the two countries might trade

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