Using the United States and United Kingdom production frontiers from Problem 7, assume that the no-trade or autarky point is 3W and 3/4C (in million units) in the United States and 1/2W and 1C in the United Kingdom. Also assume that with the opening of trade the United States exchanges 1W for 1C with the United Kingdom. Show graphically for the United States and the United Kingdom the autarky (or no-trade) point of production and consumption, the point of production and consumption with trade, and the gains from trade.
Problem 7
Assume that the data in Case B in Table 2.5 refer to millions of bushels of wheat and millions of yards of cloth.
Table 2.5
Production Possibilities in the United States and the United Kingdom

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Case A Case B Case C Case D U.S U.K U.S U.K U.S U.K U.S U.K Wheat (bushels/hour) Cloth (yards/hour) 4