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Extibit 29-4

-Answer the Questions Below:
(A) Suppose 1/31 / 3

Question 56

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Extibit 29-4
 Extibit 29-4   -Answer the questions below:  (A) Suppose cauntry A has 10d urits of labar and caunty B has 20d urits af lagar. Based an the infarmation in Extibit 29-4, draw the production possibilities curve for both cauntries, with radios an the harizontal aris. What is the slope af each curve? (B) Suppose the post-trade relative price is  1 / 3  radio per banana ar equivalently 1 radio per 3 bananas. Draw the post-trade prothction possibilities curve for each cauntry and identify the prociuction paint far each cauntry.
-Answer the questions below:
(A) Suppose cauntry A has 10d urits of labar and caunty B has 20d urits af lagar. Based an the infarmation in Extibit 29-4, draw the production possibilities curve for both cauntries, with radios an the harizontal aris. What is the slope af each curve?
(B) Suppose the post-trade relative price is 1/31 / 3 radio per banana ar equivalently 1 radio per 3 bananas. Draw the post-trade prothction possibilities curve for each cauntry and identify the prociuction paint far each cauntry.

Correct Answer:

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(A) See graph below. The slope far caunt...

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