c) D=2 and k) C=5 D=2

c) Assume that preferences (the same for all individuals in both countries) can be summarized by the utility function U = QADI(D+1) Q (D+1) where D is the last of the non-zero digits of your student ID number above. The marginal utility of Food is [D/(D+1)](Q/QP)(D+1) while the marginal utility of Manufactures is [1/(D+1)](QF/Qx)DVD+1), Derive the relative demand curve. Show your work RD curve d) On the graph below determine the intercepts of the RS curve on the vertical and horizontal axis and record your answers on the three lines. What is the equilibrium world price ratio and the equilibrium relative quantity? Explain how you arrived at the equilibrium world price and show your calculation for the horizontal intercept. (I will give full credit to your answer below for whatever RD curve you found in part (c) if used correctly.) Py/P RS Qw+Q*)/Q+Q*) Explanation and calculations: c) Assume that preferences (the same for all individuals in both countries) can be summarized by the utility function U = QADI(D+1) Q (D+1) where D is the last of the non-zero digits of your student ID number above. The marginal utility of Food is [D/(D+1)](Q/QP)(D+1) while the marginal utility of Manufactures is [1/(D+1)](QF/Qx)DVD+1), Derive the relative demand curve. Show your work RD curve d) On the graph below determine the intercepts of the RS curve on the vertical and horizontal axis and record your answers on the three lines. What is the equilibrium world price ratio and the equilibrium relative quantity? Explain how you arrived at the equilibrium world price and show your calculation for the horizontal intercept. (I will give full credit to your answer below for whatever RD curve you found in part (c) if used correctly.) Py/P RS Qw+Q*)/Q+Q*) Explanation and calculations