Question: Hi, Can anyone please demonstrate graphically, by using the PPF-indifference curve diagram that (a) even if a country's production does not change with the opening
Hi,
Can anyone please demonstrate graphically, by using the PPF-indifference curve diagram that
(a) even if a country's production does not change with the opening of the country to trade, a gain (the consumption gain's) can still occur even though there is no production gain.
b) that a change in tastes can cause a country to shift from being an exporter of a good to being an importer of that same good. (Assume that world prices are constant.).
Thanks
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