solve

The graph to the right shows how many pounds of apples and pounds of cherries you and your neighbor can each pick in one week. For example, if you devote all of your time to picking apples and none of your time to picking cherries, you can pick 8 pounds of apples. If you devote all of your time to picking cherries, you can pick 48 pounds. At the same time, if your neighbor devotes all of her time to picking apples, she can pick 24 pounds of apples. If she devotes all of her time to picking cherries, she can pick 24 pounds. Suppose initially that you (Y) are consuming 4 pounds of apples and 24 pounds of cherries and that your neighber (N) is consuming 4 pounds of apples and 20 pounds of cherries, as indicated in the graph. Then, suppose you and your neighbor specialize by each only picking the goed for which you have a comparative advantage and trade. In particular, suppese you trade your neighbor half of your production for half of what your neighbor produces. In the table below, first fill in production when specializing. (Enter numeric responses using integers.) You Your Neighbor Apples Cherries Apples Chemies Consumption without trade 4 2 4 20 Production ~ R ~ ~ with Trade g e s g Next, fill in consumption with trade. Recall that you trade your neighbor half of what you pick for half of what your neighbor picks. You Your Neighbor Apples Cherries Apples Cherries Consumption without trade 4 u 4 20 Production with Trade 0 48 2 0 Consumption o ~ ~ with Trade 12 24 12 24 Finally, fill in gains from trade You Your Neighbor Apples Cherries Apples Chemies Consumption without trade 4 2 4 20 Production with Trade 0 42 A 0 Consumption with Trade 12 24 12 24 Gains q 7 8 i from Trade Cherries (pounds) 80- T. 64 56 o 48 204 3. 24 16+ PRFheighbar - o 8 16 24 32 40 48 Apples (pounds) 56 64 T2 80