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Based on the table below, which is a PPF table depicting maximum output capabilities for each good, determine who has comparative advantage in pumpkins. You
Based on the table below, which is a PPF table depicting maximum output capabilities for each good, determine who has comparative advantage in pumpkins. You must show work to receive credit. (6 pts.)
? | Apples | Pumpkins |
Jericho | 200 | 300 |
Syosset | 100 | 200 |
a) Based on your results to the previous question (table above), which would be the world price of apples, $3 or $6? Explain.
b) Using the world price selected in b, determine the Qs(domestic) and Qd(domestic)
c) Would a quota help or hurt domestic producers of apples? Explain
LONG ISLAND Price 9.00 Supplydom 7.00 5.00 3.00 2.00 Demanddom 1.00 0.50 25 50 100 200 300 400 QtyStep by Step Solution
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