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Graphing Exercises
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Use the following table to answer Questions 1 and 2. The table shows the number of hours required to produce one unit of output of potatoes and fish in Denmark and Lithuania:

 PotatoesFish
Lithuania68
Denmark104
    1. If Denmark has 1,000 hours of labor available, graph its production possibilities frontier. Select some point on Denmark's PPF and label the point A.
    2. Suppose Denmark and Lithuania agree to trade at an international terms of trade of 1 fish = 0.667 potatoes (or 1 potato = 1.5 fish). On Denmark's PPF, label the post-trade production point B.
    3. Draw and label the consumption possibilities frontier.
    4. Select a point on the CPF that would represent an increase in consumption of both goods relative to point A. Label the point C.







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