Midterm1_v1_Fall2013_Solution

This implies that x and y are a complementary goods b

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Unformatted text preview: ach has 360 minutes available. If each person divides his time equally between the production of wheat and beef, then total production is a. 10.5 bushels of wheat and 16.5 pounds of beef. b. 21 bushels of wheat and 33 pounds of beef. c. 35 bushels of wheat and 22 pounds of beef. d. 42 bushels of wheat and 66 pounds of beef. 9. [4%] Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in Zenland can produce either 5 units of organic grain or 15 units of incense per year. There are 20 workers in Agland and 10 workers in Zenland. Currently the two countries do not trade. Agland produces and consumes 100 units of grain and 20 units of incense per yea...
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