M⁵ Consider an economy with two goods, cloth and food. The production possibility frontier of this economy is given by 30% +Q = 3600.Preferences of the consumers are described by the following utility function U(Qc.Qp) =/Q.QF.%3DSuppose this economy can trade with the rest of the world at the relative price of cloth to food equal 3. How much food will thiseconomy import?[Insert your answer up to the nearest integer]

1. Production Possibility Frontier (PPF): , where is the quantity of food and is the quantity of…

Consider an economy with two goods, cloth and food. The production possibility frontier of this economy is given by 3Q2+Q2 = 3600. Preferences of the consumers are described by the following utility function U(Qc+QF)=√√QcQF- Suppose this economy can trade with the rest of the world at the relative price of cloth to food equal 3. How much food will this economy import? [Insert your answer up to the nearest integer]

Consider an economy with two goods, cloth and food. The production possibility frontier of this economy is given by 3Q2+Q2 = 3600. Preferences of the consumers are described by the following utility function U(Qc+QF)=√√QcQF- Suppose this economy can trade with the rest of the world at the relative price of cloth to food equal 3. How much food will this economy import? [Insert your answer up to the nearest integer]

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.6P

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