Figure: The Production Possibility Frontiers for Jackson and Tahoe
(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Look at the figure The Production Possibility Frontiers for Jackson and Tahoe.In autarky, Jackson produces and consumes 30 head of cattle and 80 bushels of wheat, while Tahoe produces and consumes 80 head of cattle and 60 bushels of wheat.If the two countries engage in international trade and the price of 1 head of cattle equals 2 bushels of wheat, world production of cattle will:
A.remain constant.
B.increase by 90 head.
C.increase by 120 head.
D.decrease by 30 head.

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The Answer of Figure: The Production Possibility Frontiers for Jackson and Tahoe
(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Look at the figure The Production Possibility Frontiers for Jackson and Tahoe.In autarky, Jackson produces and consumes 30 head of cattle and 80 bushels of wheat, while Tahoe produces and consumes 80 head of cattle and 60 bushels of wheat.If the two countries engage in international trade and the price of 1 head of cattle equals 2 bushels of wheat, world production of cattle will:
A.remain constant.
B.increase by 90 head.
C.increase by 120 head.
D.decrease by 30 head.

Figure: the Production Possibility Frontiers for Jackson and Tahoe