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Let’s assume that before international trade opens up, Russia is at a point on its production possibility curve (PPC) where it produces 40 apples and 40
computers. Once trade opens up, the price of a computer becomes two apples. In response, Russia moves along its PPC to a new point where it is producing
50 computers and 20 apples. Is Russia now better off? Explain by providing numerical justification.
Show all your calculations step by step on how to reach your solutions; a single numeric answer will not be given any credit.
Your response must be at least 200 words in length
