Suppose that Yosemite 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 6 million pounds of corn for 6 million pounds of pistachios. This ratio of goods is known as the price of trade between Yosemite and Congares. The following graph shows the same PPF for Yosemite as before, as well as its initial consumption at point A. Place a biack point (plus symbol) on the graph to indicate Yosemite's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. @ Yosemite 18 ks 14 Consumption After Trade o2 c 5 2 a s 10 Z 2 = : = 3 S s fuPPF Q = @ . o A 2 o o 2 4 & 3 10 12 14 18 CORN (Millions of pounds) The following graph shows the same PPF for Congaree as before, as well as its initial consumption at point A. As you did for Yosemite, place a black point (plus symbol) on the following graph to indicate Congaree's consumption after trade. As you did for Yosemite, place a black point (plus symbol) on the following graph to indicate Congaree's consumption after trade. @ Congaree 16 -+ 14 Consumption After Trade @ 1z 4 PPF c 5 5 2 w10 z = = w o 8 o = woa o A 2 0 0 2 4 6 8 10 12 4 16 CORN (Millions of pounds) True or False: Without engaging in international trade, Yosemite and Congaree would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) O True O False When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Yosemite and Congaree. Both countries produce corn and pistachios, each initially {i.e., before specialization and trade) producing & million pounds of corn and 3 million pounds of pistachios, as indicated by the grey stars marked with the letter A. @ @ 'Yosemite Congaree 16 16 14 14 @ @ S