Question

Suppose initially that you (Y) are consuming 8 pounds of apples and 24 pounds of cherries and that your neighbor (N) is consuming 4 pounds of apples and 28 pounds of cherrios, as indicated in the graph. Then, suppose you and your neighbor specialize by each only picking the good for which you have a comparative advantage and trade in particular, suppose you trade your neighbor half of your production for half of what your noighbor produces ppf you In the table below, first fill in production when specializing (Entor numero responses using integers) (spunod sa You Your Neighbor Apples Chemos Apples & Consumption without trade Production with Trade 16 24 32 10 8 Apples (pounds) 6 4 12 You Next, fill in consumption with trade. Recall that you trade your neighbor half of what you pick for half of what your neighbor picks Your Neighbor Apples Chorios A s Chen Consumption without trade Production with Trade Consumption with Trade ption D D D

Answer 1

half of apples is traded for half for cherries  

you. your neighbor

apples. Cherries. Apples. Cherries

Consumption with trade. 16. 36. 16. 36