hi, please help!
1. PPF and CPF for 13 points. Jane and Tarzan can produce food and luxury goods. Tarzan's production possibilities frontier (PPF) is defined by Qtarzan + 60Farzan = 12 where Qtarzan is the quantity of luxury goods and QFarzan is the quantity of food produced by Tarzan. Jane has 8 hours of work. Each hour of work yields 1 unit of food or 2 units of luxury goods. Here are three independent scenarios. Scenario 1: Suppose that Tarzan and Jane trade with each other (i.e., no outside merchants). Tarzan and Jane agree to trade goods under the following conditions: 1) the terms of trade are 1 unit of food in exchange for 3 units of luxury goods; and 2) each specializes according to his/her comparative advantage. Sketch on two different graphs (one for Tarzan and one for Jane) the individual PPFs, the individual CPFs, the individual points of production, and shade the areas corresponding to the gains from trade. Clearly label your graphs (i.e., indicate values for slopes, intercepts, endpoint(s), and points of production). Note that luxury goods are on the y-axis and food is on the x-axis. (6 points) QTarzan TARZAN Jane JANE Cfarzan Clane Qarzan 2F CTarzan Caneb. Scenario 2: Suppose that Tarzan and Jane trade with each other (i.e., no outside merchants). Tarzan and Jane agree to trade under the following new conditions: 1) the terms of trade are 1 unit of food in exchange for 4 units of luxury goods; 2) each specializes according to his/her comparative advantage; and 3) Jane consumes 5 units of the good she produces. i. Sketch on two different graphs (one for Tarzan and one for Jane) the individual PPFS, the individual CPFs, the individual points of production, and the individual points of consumption. Clearly label your graphs (i.e., indicate values for slopes, intercepts, endpoint(s), points of production, and points of consumption). Note that luxury goods are on the y-axis and food is on the x-axis. (4 points) QTarzan TARZAN Qjane JANE Carzan Qtarzan Jane Tarzan ClaneScenario 3: Tarzan and Jane are now part of the same team, and they trade with outside merchants under the following conditions: 1) The price of 1 unit of luxury good is PL = 1 and the price of 1 unit of food is PF 2 1; and 2) Tarzan and Jane together consume a total of 5 units of luxury goods and as many units of food as possible. i. Sketch on the graph below the joint PPF, CPF, point of production, and point of consumption. Clearly label your graphs (i.e., indicate values for slopes, intercepts, kink(s), point of production, and point of consumption). Note that luxury goods are on the yaxis and food is on the x-axis. (3 points) 2. PPF and investment for 13 points. Kayla has 40 hours to provide treatment to injured individuals and to locate disaster survivors. It takes Kayla 8 hOurs to provide treatment to 1 injured individual and 10 hours to locate 1 disaster survivor. In addition, Kayla has the option to devote 4 hours to do one and only one of the following two activities: acquiring a drone (and learning how to use it) or resting. In other words, Kayla cannot split her 4 hours between acquiring a drone and resting. If she uses 4 hours to acquire a drone and to learn how to use it, then it takes Kayla 8 hours to provide treatment to 1 injured individual (no change) and 4 hours to locate 1 disaster survivor. If she rests for 4 hours, then it takes Kayla 6 hours to provide treatment to 1 injured individual and 6 hours to locate 1 disaster survivor. Note that located disaster survivors is on the yaxis (QM is number of located Qisaster urvivors) and treated injured individuals is on the xaxis (Q N is number of treated [njured individuals). a. Sketch Kayla's PPF conditional on not acquiring a drone and not resting. Clearly label your graph i.e., indicate values for slope and intercepts). (2 points) Q03 01! b. Sketch Kayla's PPF conditional on acquiring a drone and learning how to use it. Clearly label your graph (i.e., indicate values for slope and intercepts). (2 points) Qns I Qn c. Sketch Kayla's PPF conditional on resting. Clearly label your graph (i.e., indicate values for slope and intercepts). (2 points) QDS QII d. Using your answers in parts 2.a., 2.b., and 2.c., sketch Kayla's PPF. Clearly label your graph (i.e., indicate values for slopes, intercepts, and kink(s)). (4 points) QDS QII e. How many disaster survivors must be located so that acquiring a drone is efficient? Justify your answer using the graph drawn in part 2.d. (3 points)
