wine908070605040302010PPFܝܝܝܕܘPortugalCPF0 10 20 30 40 50 60clothwineOb) Production of cloth in England will fall to zero, while the price of wine will increase to %ydboO (c) Production of wine in Portugal will increase to 90 while the price of cloth will tail to 2 yaboleO() Production of wine in England will increase to 60, while the price of cloth will tall to 3 bottleslyd88284821908070605040302010EnglandPPF00 10 20 30 40 50 60cloth13. According to the above sel of production possibiles and consumption (trade) possibites onders, what will happen to production and relative prices once trade is opened between these two countes?O(x) Production of cloth in Portugal will fall to zero, while the price of wine will fall to % ydbCPF

PPF stands for Production Possibility Frontier, which is a graphical representation showing the…

wine 90 80 70 60 50 40 30 20 10 PPF 0 Portugal CPF wine Ob) Production of cloth as England will fall to zero, while the price of wine will increase to %ydbole O(c) Production of wine in Portugal will increase to 90 while the price of cloth will tail to 2 yabottle O() Production of wine in England will increase to while the price of cloth will tall to 3 bottles/yd 90 80 70 60 50 40 30 Lligial PPF # 0 10 20 30 40 50 60 cloth 13. According to the above sel of production possbetes and consumption drade) possibates onders, what will happen to production and relative prices once trade is opened bef O(x) Production of cloth in Portugal will fall to zero, while the price of wine will t 20 10 0 +++ 0 10 20 30 4 cloth

wine 90 80 70 60 50 40 30 20 10 PPF 0 Portugal CPF wine Ob) Production of cloth as England will fall to zero, while the price of wine will increase to %ydbole O(c) Production of wine in Portugal will increase to 90 while the price of cloth will tail to 2 yabottle O() Production of wine in England will increase to while the price of cloth will tall to 3 bottles/yd 90 80 70 60 50 40 30 Lligial PPF # 0 10 20 30 40 50 60 cloth 13. According to the above sel of production possbetes and consumption drade) possibates onders, what will happen to production and relative prices once trade is opened bef O(x) Production of cloth in Portugal will fall to zero, while the price of wine will t 20 10 0 +++ 0 10 20 30 4 cloth

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter21: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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