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Two countries produce coffee and blueberries. Colombia can produce either 20 thousand pounds of coffee or...

Two countries produce coffee and blueberries. Colombia can produce either 20 thousand pounds of coffee or 40 thousand pounds of blueberries per year. Nicaragua can produce either 25 thousand pounds of coffee or 100 thousand pounds of blueberries per year.
Initially the two countries do not trade. Colombia produces 7 thousand pounds of coffee and 26 thousand pounds of blueberries. Nicaragua produces 7 thousand pounds of coffee and 72 thousand pounds of blueberries.
Suppose the countries completely specialize and decide to trade 9 thousand pounds of coffee for 27 thousand pounds of blueberries. After trade, Colombia can consume  thousand more pounds of coffee and  thousand more pounds of blueberries in comparison to the pre-trade consumption.
After trade, Nicaragua can consume  thousand more pounds of coffee and  thousand more pounds of blueberries. Enter whole numbers only.

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Answer #1

Productivity table

Coffee Berry
Columbia 20 40
Nicaragua 25 100

So Columbia has Comparative ADVANTAGE in Coffee,

So it specialises in Coffee,

& Nicaragua specializez in Berry

Initial consumption levels:

In Columbia ( Coffee, Berry)= (7,26)

In Nicaragua, (7,72)

so if Columbia trades 9 Coffee for 27 Berry

it can have (20-9) = 11 coffee , with 27 Berry

1) Columbia has more 4 coffee

& 1 more berry

2) Nicaragua has more 2 coffee

& (100-27)= 73 berry, so 1 more berry

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