Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150.Graph the relative demand curve along with the relative supply curve of banana. (Q_A^D)/(Q_B^D )=1/2*p_b/p_a ↔1/( (Q_B^D)/(Q_A^D ))=1/2*p_b/p_a Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples What is the equilibrium relative price of banana? 1. Home has 12,000 units of labor available. It can produce two goods, apples andbananas. The unit labor requirement in apple production is 100, while in bananaproduction is 75. There is now also another country, Foreign, with a labor force of18,000. Foreign's unit labor requirement in apple production is 120, while in bananaproduction is 150.c. Graph the relative demand curve along with the relative supply curve of banana.Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of applesPb11PbHint:=2РаQ% 2 PaWhat is the equilibrium relative price of banana?

Home country has 12000 units of labor available.The two goods are produced by the home and foreign…

Answered: 1. Home has 12,000 units of labor…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 5PA

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Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150.

Graph the relative demand curve along with the relative supply curve of banana. (Q_A^D)/(Q_B^D )=1/2*p_b/p_a ↔1/( (Q_B^D)/(Q_A^D ))=1/2*p_b/p_a

Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples

What is the equilibrium relative price of banana?

1. Home has 12,000 units of labor available. It can produce two goods, apples and
bananas. The unit labor requirement in apple production is 100, while in banana
production is 75. There is now also another country, Foreign, with a labor force of
18,000. Foreign's unit labor requirement in apple production is 120, while in banana
production is 150.
c. Graph the relative demand curve along with the relative supply curve of banana.
Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples
Pb
1
1
Pb
Hint:
=
2
Ра
Q% 2 Pa
What is the equilibrium relative price of banana?

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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