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9. The following table contains information about three countries with a difficult choice ahead of them, and it is your job to provide insight on

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9. The following table contains information about three countries with a difficult choice ahead of them, and it is your job to provide insight on what would happen. Country X Country Y Country Z PPF 1: A and B QA = 100 4 QA = 300 - 402 QA = 400 - 40; PPF 2: B and C QB = 200 - 402 QB = 300 - 302 Q= = 500 -502 Utility 1 U1 = 4QA + 30; + 280= U1 = QA + 3Q; + 60. U1 = QA + 3Q3 + 6Q Utility 2 U2 = 30= + 1.502 + 210c U2 = QB + QE + 30c Uz = Q= + QE + 30c The three countries above are each faced with the dilemma of what to produce and what to import. They can either produce goods A and B, or goods Band C (and potentially goods A and C, but don't worry about this possibility for now) a. Write down the indifference curves equations for each of these utility functions (With A on the Y axis for PPF 1 and B on the Y axis for PPF2) b. Find the slopes of all the indifference curves and their corresponding PPFs c. Equate each indifference curve slope to its corresponding PPF slope for each country and calculate the quantities of goods B and C that are produced in each country d. Given that the absolute value of the slopes of the PPF calculated is the ratio of prices (i.e. [slope of PPF 1) = Pa/PA), find the ratio of prices for all scenarios. (Hint: Plug the values of Q: and Qc obtained in Cabove in the corresponding slope and take the absolute value) e. Assuming PA is a numeraire, (i.e. PA = 1) in country all countries, find all prices in each country. (Hint: plug in the value of the numeraire in each price ratio and solve the two equations for the two remaining unknowns) f. Given that the country with the lowest price will export the corresponding good, what should each country export? g. Given that the countries will import from the country offering the lowest price, which goods will each country import and which countries do they import each good from

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