The figure given below shows the production-possibility curves of Canada (AB) and the Rest of the World (CD). The pre-trade price ratio in Canada and the Rest of the World are given by the lines P₁ and P₃ respectively. The international price ratio faced by the countries is represented by the line P₂. I?₁ and I₂ are the pre-trade and post-trade social indifference curves for both Canada and the Rest of the World respectively. Before Canada entered into a trade with the rest of the world, the total amount of cotton produced in the world was _____ bales and the total amount of wheat produced in the world was _____ bushels. A)24; 19 B)24; 16 C)19; 24 D)18; 24

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The Answer of The figure given below shows the production-possibility curves of Canada (AB) and the Rest of the World (CD). The pre-trade price ratio in Canada and the Rest of the World are given by the lines P₁ and P₃ respectively. The international price ratio faced by the countries is represented by the line P₂. I?₁ and I₂ are the pre-trade and post-trade social indifference curves for both Canada and the Rest of the World respectively. Before Canada entered into a trade with the rest of the world, the total amount of cotton produced in the world was _____ bales and the total amount of wheat produced in the world was _____ bushels. A)24; 19 B)24; 16 C)19; 24 D)18; 24

The Figure Given Below Shows the Production-Possibility Curves of Canada