Use the following information to answer the next two questions.
Suppose that 500 hours of labor in the US could produce either 700 units of product X or 800 units of product Y. 500 hours of labor in Canada could produce either 900 units of X or 1000 units of Y.
Both countries would be better off if the US specialized in producing product X and Canada specialized in producing product Y.
International trade between the US and Canada for goods X and Y would occur if the market value for each good is Y=.89X