Suppose that in the absence of trade, Home consumes nine cars and two TVs and Foreign consumes

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Suppose that in the absence of trade, Home consumes nine cars and two TVs and Foreign consumes two cars and nine TVs. Add the indifference curve for each country to the figures in Problems 2 and 3. Label the production possibilities frontier (PPF), indifference curve (U1), and the no-trade equilibrium consumption and production for each country.
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International Economics

ISBN: 978-1429278447

3rd edition

Authors: Robert C. Feenstra, Alan M. Taylor

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