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Suppose that Maldon's and Desonia agree to trade . Each country focuses Its resources on producing only the good In which It has a comparative

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Suppose that Maldon's and Desonia agree to trade . Each country focuses Its resources on producing only the good In which It has a comparative advantage . The countries s decide to exchange 24 million pounds of lemons for 24 million pounds of sugar . This ratio of goods Is known as the price of trade between Maldonla and Desonia The following graph shows the same PDF for Maldonla as before , as well as its Initial consumption at point A. Place a black point (plus symbol ) on the graph to Indicate Maldonla's consumption after trade Note : Dashed drop lines will automatically extend to both axes Your Answer Correct Answer Maldonka 64 X Consumption After Trade 48 SUGAR (Millers of pards ) E 24 32 40 48 64 LEMONS (Millions of pounds ) Folnts : 1/1 Explanation : Close Explanation Because Maldonla has a comparative advantage In the production of sugar, Maldonla will produce 48 million pounds of sugar and 0 pounds of lemons . Maldonls exports 24 million pounds of sugar for 24 million pounds of lemons . So , after trade . Maldon's consumes 24 million pounds emons as well as 24 million pounds of sugar

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