Assume that Andy and Henry, without trading with each other, will produce and consume the following number of steel bars and ketchup bottles. The Gains from Trade             Without trade     Person Good Production Consumption Gains from Trade Andy Steel bars 60 60 +35   Btl. Ketchup 60 60 +15 Henry Steel bars 20 20 +5   Btl. Ketchup 20 20 +5 Now, Assume that both Andy and Henry decide to specialize, and then Andy trades 25 steel bars to Henry for 75 Btls. ketchup. This outcome is shown in the table below. Compared to the result without trade, what are the gains from trade that Andy experiences when he and Henry specialize and trade? The Gains from Trade             With specialization     Person Good Production Consumption Gains from Trade Andy Steel bars 120 95 (keep) +35   Btl. ketchup 0 75 (from Henry) +15 Henry Steel bars 0 25 (from Andy) +5   Btl. ketchup 100 25 (keep) +5

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