(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Description)
Two coordinate planes are drawn on the slide.
The left coordinate plane is labeled Saudi Arabia. The horizontal axis is labeled as Quantity of cars. It is measured from 0 to 12 million. The vertical axis is labeled as Quantity of oil. It is measured from 0 to 900 million of barrels.
A line passing through a point with coordinates, 0 and 800, and a point with coordinates, 4 and 0, is drawn on this coordinate plane.
The right coordinate plane is labeled United States. The horizontal axis is labeled as Quantity of cars. It is measured from 0 to 12 million. The vertical axis is labeled as Quantity of oil. It is measured from 0 to 900 million of barrels.
A line passing through a point with coordinates, 0 and 400, and a point with coordinates, 10 and 0, is drawn on this coordinate plane.
(Speaker)
We know that Saudi Arabia will produce 800 million barrels of oil and the US will produce 10 million cars.
(Description)
On the Saudi Arabia coordinate plane, 800 on the vertical axis are highlighted.
On the United States coordinate plane, 10 on the horizontal axis are highlighted.
(Speaker)
This problem is going to have you explore the gains from trade. The question specifically asks, if both countries specialize in production, can each country consume 400 million barrels of oil and five million cars?
(Description)
A point with coordinates, 5 and 400, is plotted on both coordinate planes. It is labeled as Production without trade. This point is above the PPF line for both coordinate planes.
(Speaker)
If Saudi Arabia trades 400 million barrels of oil to the United States in exchange for five million cars, they will be left with 400 million barrels of oil. And the US will still have five million cars.
(Description)
On the Saudi Arabia coordinate plane, a vertical arrow towards the point with coordinates, 5 and 400, is drawn. It has the following approximate coordinates: 5 and 800 for starting point, 5 and 400 for ending point.
Another horizontal arrow towards the same point is drawn. It has the following approximate coordinates: 0 and 400 for starting point, 5 and 400 for ending point.
On the United States coordinate plane, a vertical arrow towards the point with coordinates, 5 and 400, is drawn. It has the following approximate coordinates: 5 and 0 for starting point, 5 and 400 for ending point.
Another horizontal arrow towards the same point is drawn. It has the following approximate coordinates: 10 and 400 for starting point, 5 and 400 for ending point.
(Speaker)
In our graph, we can see that specialization allows each country to consume beyond their production possibility's frontier.