30. Assume a Ricardian, constant-cost world. There are two coun- tries, the United States and Canada. Each country can produce cam- eras and milk. The table below shows production per man-hour for each country. United Canada States Cameras Milk The United States has a labor force of 1,000 workers, and Canada has a labor force of 500 workers. 6 2 1 2 a) Graph the world supply curve for cameras. b) Show a possible world demand curve and price (assuming that both countries completely specialize).
30. Assume a Ricardian, constant-cost world. There are two coun- tries, the United States and Canada. Each country can produce cam- eras and milk. The table below shows production per man-hour for each country. United Canada States Cameras Milk The United States has a labor force of 1,000 workers, and Canada has a labor force of 500 workers. 6 2 1 2 a) Graph the world supply curve for cameras. b) Show a possible world demand curve and price (assuming that both countries completely specialize).
Chapter18: International Trade And Comparative Advantage
Section: Chapter Questions
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