Use the graphs below to answer the following questions:

Assume the following: There are two nations: Queensland and Terra Firma. Demand conditions are the same in each nation (i.e. the demand curve for each nation is identical) IJse the graphs below to answer the following questions. b. d. Which nation has an absolute advantage in corn production? What condition(s) might explain this absolute advantage? Describe the range of possible trading prices for corn (i.e. world price of corn)? Describe the adjustment process in the Queensland as international trade begins: iii. v. Vii. viii, What happens to the domestic price of corn? What happens to the quantity purchased? What happens to the quantity produced? Does the Queensland export or import corn? What quantity Of corn does it trade? What group in the Queensland gains from trade? How much does it gain? What group in the Queensland loses from trade? How much does it lose? Does the Queensland as a whole gain from international trade? Explain. Describe the adjustment process in the Terra Firma as international trade begins: iii. v. vii. viii. What happens to the domestic price of corn? What happens to the quantity purchased? What happens to the quantity produced? Does Terra Firma export or import corn? What quantity of corn does it trade? What group in Terra Firma gains from trade? How much does it gain? What group in Terra Firma loses from trade? How much does it lose? Does Terra Firma gain from international trade? Explain. Queensland Terra Firma