8 . Ch. 3 Problems and Applications Q4 Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. The opportunity cost of producing a car in Canada is V bushels of wheat, and the opportunity cost of producing a bushel of wheat in Canada is V CBFS. Use the blue line (circle symbol) to draw Canada's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Canada can achieve without trade if it chooses to consume 10 million cars. 20 O 18 PPF 16 .+ 14 12 Without Trade 10 Cars (millions) With Trade 50 100 150 200 250 300 350 400 Wheat (millions of bushels) Now suppose that the United States offers to buy 10 million cars from Canada in exchange for 200 million bushels of wheat. On the previous graph, use the grey point (star symbol) to indicate the consumption bundle Canada can achieve with trade if it continues to consume 10 million cars. Canada accept the deal the United States proposes