Draw for Nation 2 a figure analogous to the top panel of Figure 7.4 under the following

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Draw for Nation 2 a figure analogous to the top panel of Figure 7.4 under the following assumptions:
(a) Only the amount of capital doubles in Nation 2.
(b) The free trade equilibrium-relative commodity price is PX / PY = 1.
(c) Nation 2 is too small to affect the relative commodity prices at which it trades before and after growth.
(d) Nation 2 exports 150Y after growth.
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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