Go back to Table in the chapter, which is based on the hours requirements in Table. Suppose that when trade opens up between the U.S.

Go back to Table in the chapter, which is based on the hour’s requirements in Table. Suppose that when trade opens up between the U.S. and China, the U.S. increases its production of soybeans by 100 bushels (instead of 10 as in the table). China increases its production of T-shirts by 400 (instead of 40). Assume that when the two countries trade with each other, each bushel of soybeans is exchanged for 3 T-shirts. Finally, suppose that the U.S. trades (exports) 90 bushels of soybeans to China.

a. How many T-shirts from China will the U.S. receive in exchange for its soybeans exports to China?
b. After trading with China, how many more bushels of soybeans will be available for Americans to consume (compared to the situation before trade)? How many more T-shirts?
c. After trading with the U.S., how many more bushels of soybeans will be available for the Chinese to consume? How many more T-shirts?
d. Based on this example, consider the following statement: “When two countries trade with each other, one country’s gain will always be the other country’s loss.” Is this statement true or false? Explainbriefly.

Price (per bottle) Original Quantity Supplied Quantity Supplied After Decrease in Transportation Cost $1.00 $2.00 $3.00 $4.00 $5.00 25,000 40,000 50,000 60,000 65,000 45,000 60,000 70,000 80,000 90,000