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1. There is an economy consisting of only two people, Fred and Robin, who produce and consume two goods: gallons of juice and gallons of

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1. There is an economy consisting of only two people, Fred and Robin, who produce and consume two goods: gallons of juice and gallons of beer. In 1 week. Robin can produce 25 gallons ofjuice or 5 gallons of beer. Fred can produce 9 gallons of juice or 3 gallons of beer. Assume both goods can be produced in continuous quantities. a) Determine who has the comparative advantage in each good. Show the numbers that led to this conclusion. (1 point) b) Draw the PPF for the economy with Gallons of juice on the vertical axis. Be sure to specically label both intercepts, give the MRT at every point and give the specic coordinates of any point where the MRT changes. {1 point) (2) Explain why Robin having 13 gallons of juice and 3 gallons of beer and Fred having ? gallons of juice and 1 gallon of beer is not possible without trade. Give the production of each person and the trade that makes this outcome possible. (1 point)

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