Use the table below to answer the questions that follow.
Cars Bikes
Sally: 20 30
Tom: 10 10
Determine the opportunity cost for producing cars and bikes for both Sally and Tom. Who has the comparative advantage in producing cars? _____________.
Who has the comparative advantage in producing bikes? ___________.

Create a production possibilities curve showing Sally and Tom’s gains from trade when they produce and trade the good for which they have a comparative advantage. (Hint: Create a trade ratio, calculate gains of trade, and graph). Write a one to two-sentence caption explaining why both Sally and Tom benefit from trade in this scenario.