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Ch6. The Standard Trade Model ? PPF with increasing costs ? Community indifference curves ? Equilibrium in isolation ? The basis for and the gains from trade with increasing costs ? Trade based on differences in tastes 2020/9/15 Trade based on differences in tastes ?The two PPFs expressed as a single PPF curve, PPF1=PPF。 The differences in tastes between two countries, I ≠I’. Nation 1’s preference for Y, nation 2’s preference for X, so 1’s parative advantage is in X, 2’s in Y. 2020/9/15 Reading lists ? Salvatore, ch3.