Assume that the data in Case B in Table 2.5 refer to millions of bushels of wheat and millions of yards of cloth.

(a) Plot on graph paper the production frontiers of the United States and the United Kingdom.

(b) What is the relative price of wheat (i.e., P_W / P_C) in the United States and in the United Kingdom in autarky (no trade)?

(c) What is the relative price of cloth (i.e., P_C / P_W) in the United States and in the United Kingdom in autarky?

Table 2.5

Production Possibilities in the United States and the United Kingdom

Case A Case B Case C Case D U.S U.K U.S U.K U.S U.K U.S U.K Wheat (bushels/hour) Cloth (yards/hour) 4