Absolute and Comparative Advantage in Trade Steps: - Identify absolute advantage: Country Y produces more sugar (40 > 30), so Y has absolute advantage in sugar; Country X produces more textiles (20 > 10), so X has absolute advantage in textiles. - Calculate opportunity costs: For X, 1 sugar costs 20/30 = 2/3 textiles (or 1 textile costs 30/20 = 1.5 sugar); for Y, 1 sugar costs 10/40 = 1/4 textiles (or 1 textile costs 40/10 = 4 sugar). - Determine comparative advantage: Lower opportunity cost wins; Y's 1/4 textiles per sugar < X's 2/3, so Y has comparative advantage in sugar; X's 1.5 sugar per textile < Y's 4, so X has comparative advantage in textiles. Why D is correct: - Comparative advantage is based on lower opportunity cost; Y's opportunity cost of sugar (1/4 textiles) is lower than X's (2/3 textiles). Why the others are wrong: - A: X lacks absolute advantage in sugar (produces less than Y). - B: X has higher opportunity cost for sugar, so lacks comparative advantage there. - C: Y produces fewer textiles …