Please Answer Questions E And F 1 (14.25 KiB) Viewed 33 times
Please Answer Questions E And F 2 (23 KiB) Viewed 33 times
Please Answer Questions E And F 3 (9.38 KiB) Viewed 33 times
I. India and Zaire both produce tea and coffee. Use the production possibilities data below to answer the following. (Coffee and tea production are both measured in millions of pounds a year.) Zaire India Tea 0|14|28|42 56 Tea 0|122436|48 Coffee |84|63|42|21 0 Coffee 32241680
-E. If Zaire was producing and consuming 14 million pounds of tea and 63 million pounds of coffee. and India was producing and consuming 24 million pounds of tea and million pounds of coffee, show that specialization and trade according to the law of comparative advantage will result in both countries being able to consume more tea and more coffee. 14+24= 38 million lbs tea 63+ 10 = 79 million ibs Coffee .66
F. When trade begins between the two countries, the country that exports coffee must receive more than but less than pounds of tea for each pound of coffee it exports.
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