Supply Curve (leftward) Supply Curve (rightward) Demand Curve (rightward) Demand Curve (leftward) Quantity of Wheat (a) Quantity of Wheat (b) Quantity of Wheat (c) Quantity of Wheat (d) Figure 29.4 Price of Wheat Price of Wheat Price of Wheat Price of Wheat

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.