The Figure Given Below Shows the Production-Possibility Curves of Canada

Multiple Choice

The figure given below shows the production-possibility curves of Canada (AB) and the Rest of the World (CD) . The pre-trade price ratio in Canada and the Rest of the World are given by the lines P₁ and P₃ respectively. The international price ratio faced by the countries is represented by the line P₂. I?₁ and I₂ are the pre-trade and post-trade social indifference curves for both Canada and the Rest of the World respectively. In the absence of trade, Canada consumes _____ bales of cotton and _____ bushels of wheat.

A) 20; 3
B) 16; 6
C) 20; 6
D) 12; 11