Suppose that two different castaways, Mr. and Mrs. Howell, end up on a different island. Mr. Howell can pick 1 pineapple per hour, or 1 coconut. Mrs. Howell can pick 2 pineapples per hour, but it takes her two hours to pick a coconut.
a. Construct a table like Table showing Mr. and Mrs. Howell€™s labor requirements.
b. Who€”Mr. or Mrs. Howell€”has a comparative advantage in picking pineapples? In picking coconuts? Which of the two should specialize in which tasks?

c. Assume that Mr. and Mrs. Howell had originally washed ashore on different parts of the island, and that they originally each spent 12 hours per day working, spending 6 hours picking pineapples and 6 hours picking coconuts. How will their total production change if they find each other and begin tospecialize?

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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