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The table below shows the production possibilities for Canada and Japan. Suppose that, prior to specialization and trade, both Canada and Japan are producing combination

The table below shows the production possibilities for Canada and Japan. Suppose that, prior to specialization and trade, both Canada and Japan are producing combination D. CANADAS PRODUCTION POSSIBILITIES Product A B C D E DVD players 60 45 30 15 0 Bushels of wheat 0 45 90 135 180 JAPANS PRODUCTION POSSIBILITIES Product A B C D E DVD players 90 67.5 45 22.5 0 Bushels of wheat 0 20 40 60 80 a) Draw the production possibilities curve for Canada in the graph A, and indicate its present output position. Draw the production possibilities curve for Japan in graph B, and indicate its present output position. Plot only the endpoints of each curve in the graphing areas using the appropriate tool. Plot the output combination in each graph using the Point tool. b) Suppose that the two countries specialize and trade on the basis of 1 DVD player = 1 unit of wheat. Draw the corresponding trading possibilities curves in graph A and graph B above. Plot only the endpoints of each curve in the graphing areas using the appropriate tool. c) After trade, if Canada still wishes to have 135 bushels of wheat, how many more DVDs could it have? 15 d) Show the new combination in graph A above. Use the Point tool in graph A above to plot the new combination. e) If Japan still wishes to have 22.5 DVDs, how much more bushels of wheat could it have? 20 f ) Show the new combination in graph B above. Use the Point tool in graph B above to plot the new combination

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