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The Case: Maydupnayme exists in a world where there are only 2 countries, Maydupname and one other. Maydupnayme can produce 1 car using the same

The Case:

Maydupnayme exists in a world where there are only 2 countries, Maydupname and

one other.

Maydupnayme can produce 1 car using the same amount of resources and time as it

takes to produce 3 computers.

The other country can produce 1 car using the same amount of resources and time as it

takes to produce 2 computers.

Cars are worth 2.5 times as much as computers

Both countries can trade with each other with no trade barriers

4)

How would the production decisions of Maydupnayme change if the other country

suddenly decided it no longer wanted to trade? [A, C]

5)

If a natural disaster struck the other country and destroyed many of their car

factories, slowing down production, how may trade be affected between the two

countries? When would the

two countries'

production decisions change? [T, C]

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