The income-expansion path (Engel Curve) for each of the two types of countries is drawn in the graph.

You are the CEO of Samsung in South Korea and your company makes washing machines. Washing machines can be produced on a 1 to 100 service feature scale, from the smallest and most basic (1) to the largest and most fancy (100). Samsung's Model J has 1-10 service features, Model I has 11- 20 and so on up to top-of-the line Model A which has 91-100. (See the graph below for these models on the vertical axis.) All models have the same profit per unit. There are two countries in the world-1 and 2-differing greatly in their cultural habits and norms. In type 1 countries, people want as many washing machine features as their income allows them to afford. They also hate going to the Laundromat and insist on having their own washing machine, even at low income levels. In type 2 countries, people don't care much for fancy machines, and are happy with those in the low-to-mid feature range. They also don't mind going to the Laundromat, and they choose to buy a washing machine only when their income gets to $40,000 and above. The income-expansion path (Engel curve) for each of the two types of countries is drawn in the graph below. 100 Number of Features C 70 60 E 30 H 20 10 Income in $1000 20 100 120 140 As the CEO of Samsung, and on the basis of the two types of Engel curves shown above, what model(s) would you recommend producing for type 1 countries? (Answer below.) What model(s) would you recommend producing for countries of type 2? (Answer below.) If there were an equal number of households at each income level in type-1 countries, which model would sell the most in type-1 countries? (Answer below.) Which two models would sell the fewest in type-1 countries? (Answer below.) Which would sell the most worldwide assuming the two types of countries are of equal size? (Answer below.)