How many extra shirts-boots will canada consume after trade


Canada has a comparative advantage in producing boots United states has comparative advantage in producing both goods. Neither has absolute advantage in both goods.

Suppose initially that the United States is consuming 4 boots and 8 shirts. Canada is consuming 18 boots and 2 shirts. Then both countries specialize by each only producing the good for which they have a comparative advantage and then trade. Suppose the United States trades Canada half of its production for half of what Canada produces.

The United States will have how many additional shirts and boots after the trade?

How many additional shirts and boots will Canada be able to consume after the trade?

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Microeconomics: How many extra shirts-boots will canada consume after trade
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