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There are two countries Home and Foreign. Home has 2,400 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2 Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. Suppose world relative demand takes the following form: Demand for apples/demand for bananas =price of bananas/price of apples. 1.) Using the 3-point curved line drawing tool, draw the relative demand curve on the graph to the night. Label the curve RD. Now suppose that Home's workers are only half as productive in both industries as we have been assuming The relative supply curve (RS) would shift to the left (as shown by RS,) 2) Using the point drawing tool, indicate the equilibrium relative price of apples Label This point EQ Carefully follow the instructions above and only draw the required objects 54 3 2 1- D Relative price of apples Pa/Pb + RS, 025 05 0.75 Relative quantity of apples RS 125 15 175 dou

There are two countries Home and Foreign. Home has 2,400 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2 Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. Suppose world relative demand takes the following form: Demand for apples/demand for bananas =price of bananas/price of apples. 1.) Using the 3-point curved line drawing tool, draw the relative demand curve on the graph to the night. Label the curve RD. Now suppose that Home's workers are only half as productive in both industries as we have been assuming The relative supply curve (RS) would shift to the left (as shown by RS,) 2) Using the point drawing tool, indicate the equilibrium relative price of apples Label This point EQ Carefully follow the instructions above and only draw the required objects 54 3 2 1- D Relative price of apples Pa/Pb + RS, 025 05 0.75 Relative quantity of apples RS 125 15 175 dou

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please plot the 3-point curved line asked in question one as well as the point which indicates the equilibrium relative price of apples asked in question 2.

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There are two countries Home and Foreign. Home has 2,400 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. Suppose world relative demand takes the following form: Demand for apples/demand for bananas price of bananas/price of apples. 1.) Using the 3-point curved line drawing tool, draw the relative demand curve on the graph to the right. Label the curve RD. Now suppose that Home's workers are only half as productive in both industries as we have been assuming. The relative supply curve (RS) would shift to the left (as shown by RS,) 2) Using the point drawing tool, indicate the equilibrium relative price of apples. Label This point EQ Carefully follow the instructions above and only draw the required objects. 6- 34 2- 1- 04 Relative price of apples Pa/Pb RS, RS 025 05 0.75 i 125 15 175 Relative quantity of apples ddu
Transcribed Image Text:There are two countries Home and Foreign. Home has 2,400 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. Suppose world relative demand takes the following form: Demand for apples/demand for bananas price of bananas/price of apples. 1.) Using the 3-point curved line drawing tool, draw the relative demand curve on the graph to the right. Label the curve RD. Now suppose that Home's workers are only half as productive in both industries as we have been assuming. The relative supply curve (RS) would shift to the left (as shown by RS,) 2) Using the point drawing tool, indicate the equilibrium relative price of apples. Label This point EQ Carefully follow the instructions above and only draw the required objects. 6- 34 2- 1- 04 Relative price of apples Pa/Pb RS, RS 025 05 0.75 i 125 15 175 Relative quantity of apples ddu
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