Question: 2. Given the resources available to them, countries A and B can produce the following combinations of steel and corn. Country A Country B Steel

2. Given the resources available to them, countries A and B can produce the following combinations of steel and corn.

Country A

Country B

Steel

(tons)

Corn

(bushels)

Steel

(tons)

Corn

(bushels)

36

0

54

0

30

3

45

9

24

6

36

18

18

9

27

27

15

12

18

36

6

15

9

45

0

18

0

54

a. Would countries A and B engage in trade? Why? (5 marks)

b. If they engage in trade, explain what each country would likely trade? (5 marks)

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