Suppose USA has 2,400 units of labor available. It can produce two goods, apple and bananas. The unit labor requirement in the apple production is 3, while in banana production, it is 2. Suppose Canada has a labor force of 800. Canada's unit labor requirement in apple production is 5, while in banana production is 1.
a. Graph Canada's production possibility frontier.
b. Construct the world relative supply curve.