Imagine that the inhabitants of the Magdalen Islands eat exclusively salted cod prepared according to a strict century-old method (1 kg of salt for 1 kg of cod) and that the inhabitants of Grosse le and le d'Entre extract salt and fish cod with constant returns. each of the 500 inhabitants of Grosse le is able to extract 0.8 kg of salt per day worked and to capture 1 kg of cod per day of fishing while the 400 inhabitants of Entry Island are able to extract 0.4 kg of salt per day worked and to catch 1 kg of cod per day of fishing.

Question:

1. Draw theproduction possibility frontier(PPF) anddetermineProductionandConsumptionUnderAutarky.
2. If the two islands decide to trade, determine their respective specialization. Base your answer on the relevant data. Then identify the production pairs that would result from specialization
3. Determine and illustrate the equilibrium of the common market as precisely as possible if the demand relative common salt was of the form: Ps / Pm = 3 - 1.5 (Qs / Qm).Leave the traces of your Steps.
4. illustrate the new consumption constraints (annotated CC) of the two countries, taking care to identify the consumption pairs.