Suppose initially that the United States is consuming 2 boots and 12 shirts and Canada is consuming 18 boots and 2 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces. The United States will have additional shirt(s) after the trade (enster a numeric response using an integer) and additional boot(s). additional shirt(s) as a At the same time, Canada will be able to consume result of the trade and additional boot(s)
Suppose initially that the United States is consuming 2 boots and 12 shirts and Canada is consuming 18 boots and 2 shirts, as indicated in the figure. Then, suppose the United States and Canada specialize by each only producing the good for which they have a comparative advantage and then trade. In particular, suppose the United States trades Canada half of its production for half of what Canada produces. The United States will have additional shirt(s) after the trade (enster a numeric response using an integer) and additional boot(s). additional shirt(s) as a At the same time, Canada will be able to consume result of the trade and additional boot(s)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Suppose initially that the United States is consuming 2 boots and 12 shirts
and Canada is consuming 18 boots and 2 shirts, as indicated in the figure.
Then, suppose the United States and Canada specialize by each only
producing the good for which they have a comparative advantage and then
trade. In particular, suppose the United States trades Canada half of its
production for half of what Canada produces.
The United States will have additional shirt(s) after the trade (exter a
numeric response using an integer) and additional boot(s).
additional shirt(s) as a
At the same time, Canada will be able to consume
result of the trade and additional boot(s).
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