Suppose England has 6 workers and the following technology for producing cloth and wine:
|
To produce this much cloth
|
Requires this much labor
|
Allowing this much wine
|
|
0
|
0
|
6
|
|
1
|
3
|
3
|
|
2
|
4
|
2
|
|
3
|
5
|
1
|
|
4
|
6
|
0
|
a. Describe autarky equilibrium if all the English always consume equal quantities of wine and cloth.
b. Describe autarky equilibrium if Portugal always consumes equal quantities of wine and cloth.