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Relative Demand of cloth for food is the same at Home and Foreign and equal to Q C /Q F = 0.8 - P C
Relative Demand of cloth for food is the same at Home and Foreign and equal to QC/QF = 0.8 - PC/PF. In Home, the supply function of cloth is QC = 50 - 10PF/PC and the supply function of food is QF = 50PF/PC. In Foreign, the supply function of cloth is QC = 50 - 10PF/PC and the supply function of food is QF = 12.5PF/PC. What is the Foreign's food production under autarchy? (your answer must include two decimal places)
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