(Solved): please answer (all) and grpah ty please answer all and graph it plz (ty) 4. Specialization and trade ...

4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production passiberties frontiers (PPFs) for Candonia and Desonia. Both countries produce lemons and tea, each initially (i.e. before specialization and trade) producing 24 million pounds of lemons and 12 million pounds of tea, as indicated by thet grey stars marked with the letter \( A \). Candonia has a comparative advantage in the production of production of comparative advantage. After specialization, the two countr lemons. Supposia hase that the production of the goods in which each has a advantage. The countries decide to exchange 16 million pos trade between Candonia of tea and Denonia. The following oraph shows the same ppF for Candonia as before, as weff as as inital consumption at point A. Flace a black point (olus symbol) on the graph to indicate Candonia's consumpeon after trade. Note: Dashed drop lines will aitomatically extend to both exes. Candonia has a comparative advantage in the production of production of comparative a lemons. Suppose that Candonia and Desonia spedalize in the production of the ooods in which each has a Suppose that advantage. 11 trade betwer can produce a total of to million pounds of tea and pounds of graph to indicate Candonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. The following graph shows the same PPF for Desonia as before, as well as its initial consumption at point A. As you did for Candonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption after trade. Desonia True or False: Whthout engaging in intemational trade, Candonia and Desonia would not have been able to consurre at the after trade constimption bundles. (Hint: Base this question on the answers you previously entered on this page.) True False 4. Specialiration and trade When a country has a comparative advantage in the production of a good, it mears that it can produce this good at a lower opportunity cost than its trading partnec. Then the country will specialize in the production of this good and brade it for other goods. The following graphs show the production possiblities frontiers (PPFs) for Candonia and Desonia. Both couritries produce lemons and tra, anch initially (1.e, befone specialization and trade) producing 24 milion pounds of lemons and 12 million pounds of tea, as indicated by the grey stars marked with the letter \( \mathrm{A} \). Candonia has a correarative advantage in the production of , while Devonia has a comparative advantage in the production of , Suppose that concearative advantage. After specializabion, the two countr Bcialize in the production of the goods in which each has a lemens. Suppose that Candania and Desonia agree to trade. Each \( \alpha \) millien pounds of teat and milizon pounds of advantage. The countries decide to exchange 16 million por ton producing only the good in which it has a comparative trade between Candonia and Desonia. m pounds of tea. This ratio of goods is known as the price of The following graph shows the same ffF for Candona as before, as wall as its withic consumpbon at point A. Place a black paint (alus symbol) on the gooph to indicate Candonia's consurpobon after trade. Note: Dashed drop lines will mutomabcally extend to both axes. The following graph shows the same ppF for Candonia as bofore, as well as its intial consumption at point A. Place a black point (plus symbol) on the graph to indicate Candoniais consumption after trade: Noter Dashed drop lnes will automatically extend to both axos. while Desonia has a comparative advantinge in the Candonia has a cormparative advartage in the production of , Suppose that Candonia and Desonia speclalize in the production of the goocts in which each has a productien of comparative advantage. After upecialization, the two countries can produce a total of million pounds of tea and lemons. Suppose that Candonia and Desonia agree to trade. Each country focusies its rescifces on producing only the good in which it has a comparative advantage. The countries decide to ecochange 16 millan pounds of lemons for 16 milion pounds of tea. This ratio of goods is imown as the price of trade between Candonia and Desonia. graph to indicate Candonai consumption affer trade Hotei Dashed drep innas will automatically extend to both ases. Note: Dashed drop lines will automatically extend to both axes. The following graph shows the same ppF for Desonia as before, as well as its initial consumption at point. A. As you did for Candonia, place a black point (plus symbol) on the following graph to indicate Oesoniast consumption after trade The following graph shows the same ppF for Desonia as before, as well as its initial consumption at point A. As you did for Candonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption aAter trade. True or falser Without engaging in internabonal trade, Candonia and Desonia would not have been able to consume at the after-trade consumpti bundles. (Hintr Base this question on the answers you previousty entered on this page.) True Fahe