Suppose that one day, Gilligan (the castaway) eats a magical island plant that turns him into an expert at everything. In particular, it now takes him just half an hour to pick a quart of berries, and 15 minutes to catch a fish.

a. Redo Table in the chapter.

b. Who—Gilligan or Maryanne—has a comparative advantage in picking berries? In fishing?
c. Suppose that Gilligan reallocates his time to produce two more units of his comparative advantage good, and Maryanne does the same. Construct a new version of Table in the chapter showing how production changes for each castaway, and for the island as a whole.
Price Quantity Supplied
(Per bottle) (Bottles per month)
$1.00 ........25,000
$2.00 ........40,000
$3.00 ........50,000
$4.00 ........60,000
$5.00........65,000

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Price (per bottle) $1.00 $2.00 $3.00 $4.00 $5.00 Original Quantity Demanded (average income$40,000) 75,000 60,000 50,000 40,000 35,000 New Quantity Demanded (average income $50,000) 95.000 80,000 70,000 60,000 55.000