1. Explain the difference between comparative advantage and absolute advantage? Can a country has a comparative advantageand absolute advantage in two goods at the same time compared to another...

Q1
Absolute Advantage
A country has an edge over another country when it consumes fewer resources to create that item. The consequence of a country's natural donation may be an absolute benefit. In Saudi Arabia, for example, oil extraction is almost "boiling the hole." Oil production might need significant exploration and costly drilling and extraction technology in other nations if they really contain any oil.
Comparative Advantage:
A comparative advantage is a country’s capacity to produce a certain item or service at less opportunity cost than another.
Q2.
     
    Labor hours needed to make1 unit of Table
    Labor hours needed to make 1 unit of Chair
     
     
     
    Canada
    2
    3
    Mexico
    1
    4
From above table we can say that Mexico has absolute advantage in producing Table and Canada has absolute advantage in producing Chair.
Opportunity cost
     
    OC Table
    OC Chair
    Canada
    0.67
    1.5
    Mexico
    0.25
    4
From above table we can say that Mexico has comparative advantage in producing Table and Canada has comparative advantage in producing Chair
Therefore Mexico will export table and import chair; Canada will export chair and import table.
Q3
Determinants of demand are Good pricing or service price, Buyers' revenue, the costs of the products or services concerned are either supplementary and bought together with a certain item, or alternatives and acquired instead of a product, Consumers' tastes or preferences will increase demand, Expectations of the consumer: This relates most commonly to whether a consumer feels that the price of the product in future will climb or decrease.
Demand curve...