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Shows the productivity for the countries Pin and Pang.
Machines Bread
Pin 4 or 3
Pang 3 or 8
1) If the working population of Pin and Pang are both 6 million, divided equally between the two industries in each country, how many machines and bread are currently being produced in Pin and Pang?
2) if the two countries decide to specialize, in which product does each country have a comparative advantage?
3) if the two countries were to totally specialize, what would be the resulting combined totals?
4) what are the gains from trade?
Price/Feeder Quantity Demanded Quantity Supplied $300 500 1800 270 600 1700 240 700 1600 210 800 1500 180 1000 1400 150 1100 1300 120 1200 1200 90 1300 1100 60 1400 1000 30 1500 90
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