Suppose Home has 200 units of labor. It can produce two goods, apples and bananas. In Home a worker can produce 3 apples or 4 bananas. Now suppose there is another country, Foreign, with a labor force of 200. In Foreign a worker can produce 2 apples or 5 bananas. e. Graph Foreign's PPF, with apples in the horizontal axis. f. Construct the world relative supply curve, expressing the relative price of apples (PA/PB) in terms of the relative quantity of apples (QA/QB). g. Now suppose that world relative demand takes the following form: RD: QA PB QB PA
Suppose Home has 200 units of labor. It can produce two goods, apples and bananas. In Home a worker can produce 3 apples or 4 bananas. Now suppose there is another country, Foreign, with a labor force of 200. In Foreign a worker can produce 2 apples or 5 bananas. e. Graph Foreign's PPF, with apples in the horizontal axis. f. Construct the world relative supply curve, expressing the relative price of apples (PA/PB) in terms of the relative quantity of apples (QA/QB). g. Now suppose that world relative demand takes the following form: RD: QA PB QB PA
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 24EQ: Suppose the coal and steel industries form a closed economy. Every $1 produced by the coal industry...
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