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Problems 30-31 are based on the following information: Country A produces X A of good X and lg units of good Y and has production
Problems 30-31 are based on the following information: Country A produces X A of good X and lg units of good Y and has production possibilities curve X E + Y; = 2500. Country B produces X 3 units of good X and YB units of good Y and has production possibilities curve X 5 + Y; = 4-9 00. Country can freely trade with each other. Problem 30: If X A = 40, nd X 3. Round your answer to the nearest integer number. Problem 31: If X A = 40 and the price of X is equal to $1,200 per unit, nd the price of Y. Round your answer to the nearest dollar. Problems 32-34 are based on the following information: Country A produces X A of good X and YA units of good Y and has production possibilities curve X f + YA2 = 2500. Country B produces X 3 units of good X and YB units of good Y and has production possibilities curve X 3 + 2Y3 = 90. Country can freely trade with each other. Problem 32: If both countries produce both products and the price of X is $1,200 per unit, nd the price of Y. Round your answer to the nearest dollar. Problem 33: If both countries produce both products, nd XA. Round your answer to the nearest integer number. Problem 34: Assume the preference of people changes and in a new equilibrium the price of X remains the same ($1200) while the price of Y increases by 1% relative to what it was in problem 30. Find X 3 . Round your answer to the nearest dollar. Problem 35: Suppose the market for soft drinks is a duopoly consisting of prot-maximizing rms A and B. Let p be the market price of soft drinks and qA and qB be the quantities produced by rms A and B respectively. Firm A has total cost function CA (rm) = 200% and rm B has total cost function CB (q3) = 400%. Market demand is p = 1200 (qA + qb). Find qA in the Cournot equilibrium? Round your answer to the nearest integer number
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