The following tables describe the hypothetical PPC (product possibility curves) for Canada and US for aircraft...

  

  

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The following tables describe the hypothetical PPC (product possibility curves) for Canada and US for aircraft and furniture (both in millions of tonnes). Before trade Canada produces at point C and US at point D. US Canada A aircraft 0 furniture 40 A aircraft 0 furniture 225 B 220 32 B 3 180 C 40 24 C 6 135 D 60 16 D 9 90 m E 80 E25 12 45 F 100 0 LL 15 0 In US the opportunity cost of 1 unit of furniture is In Canada the opportunity cost of 1 unit of aircraft is US has a comparative advantage in aircraft 6 Assume each country specializes in their area of comparative advantage. For trade to occur, the limits of the terms of trade for 1 unit of aircraft will be furniture 135 US The countries decide to trade 24 units of aircraft for 48 units of furniture. Fill in the following table: Country Before Trade Trade Product (Import/Export) Canada aircraft 60 furniture 16 After trade, Specialization aircraft. 0 furniture. " and therefore should import After trade, in the Canadian aircraft market consumers will consume After Trade will be happy in the Canadian aircraft market. to and pay a furniture. Gains in Trade ( " O price The following tables describe the hypothetical PPC (product possibility curves) for Canada and US for aircraft and furniture (both in millions of tonnes). Before trade Canada produces at point C and US at point D. US Canada A aircraft 0 furniture 40 A aircraft 0 furniture 225 B 220 32 B 3 180 C 40 24 C 6 135 D 60 16 D 9 90 m E 80 E25 12 45 F 100 0 LL 15 0 In US the opportunity cost of 1 unit of furniture is In Canada the opportunity cost of 1 unit of aircraft is US has a comparative advantage in aircraft 6 Assume each country specializes in their area of comparative advantage. For trade to occur, the limits of the terms of trade for 1 unit of aircraft will be furniture 135 US The countries decide to trade 24 units of aircraft for 48 units of furniture. Fill in the following table: Country Before Trade Trade Product (Import/Export) Canada aircraft 60 furniture 16 After trade, Specialization aircraft. 0 furniture. " and therefore should import After trade, in the Canadian aircraft market consumers will consume After Trade will be happy in the Canadian aircraft market. to and pay a furniture. Gains in Trade ( " O price