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Figure 3. The PPFs of Nation 1 and Nation 2 Nation 1 Nation 2 Corn Corn (Tons) III I A E B PB = 1 B' III' E' A' I' PB' =
Posted: Sun Jun 05, 2022 4:29 pm
by answerhappygod
- Figure 3 The Ppfs Of Nation 1 And Nation 2 Nation 1 Nation 2 Corn Corn Tons Iii I A E B Pb 1 B Iii E A I Pb 1 (64.89 KiB) Viewed 36 times
Figure 3. The PPFs of Nation 1 and Nation 2 Nation 1 Nation 2 Corn Corn (Tons) III I A E B PB = 1 B' III' E' A' I' PB' = 1 Bananas (tons) Bananas 1) With trade, the relative price of bananas is the same in both nations and both nations are better off because they consume on lower indifference curves. 2) With trade, the relative price of bananas is the same in both nations and both nations are better off because they consume on higher indifference curves. 3) Without trade, the relative price of bananas is different in both nations, but both nations have the same tastes. 4) Without trade, the relative price of corn is different in both nations, but both nations have the same tastes.