Cleopatra was the last Pharaoh of ancient Egypt more than 2000 years ago. As Pharaoh, she...

  

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Cleopatra was the last Pharaoh of ancient Egypt more than 2000 years ago. As Pharaoh, she aligned two Roman leaders; first with Julius Caesar and then Mark Antony. Her interests in these Roman leaders were not just romantic (she had 1 child with Caesar and 3 with Antony); she also sought to trade the riches of Egypt with Rome to increase her country's level of consumption. Suppose both Egypt and Rome can produce wheat and olives in the following quantities in one year. Egypt Wheat (tons) 100,000 75,000 50,000 25,000 0 Olives (tons) 0 50,000 100,000 150,000 200,000 Rome Wheat (tons) 80,000 60,000 40,000 20,000 0 Olives (tons) 0 20,000 40,000 60,000 80,000 Part 1: Use the line tool to draw the production possibility frontiers for each country (plot the end points only; it is not necessary to plot each point). Label Rome's production possibility frontier PPF-Rome and label Egypt's production possibility frontier PPF-Egypt. Part 2: Assume there is no trade. Cleopatra decides Egypt will consume 75,000 tons of wheat and 50,000 tons of olives. Use the double drop line tool to identify this consumption bundle on PPF-Egypt and label it A. Part 3: Suppose that without trade, Rome currently consumes 20,000 tons of wheat and 60,000 tons of olives. Use the double drop line tool to identify this consumption bundle on the PPF-Rome and label it X. Part 4: Now suppose that Cleopatra recognizes that Egypt can gain from trade with Rome. Cleopatra offers to trade 1.5 tons of olives for 1 ton of wheat. Suppose both countries specialize in the good in which they have a comparative advantage. Use the double drop line tool to identify the post- trade consumption bundles for Rome and Egypt, assuming that Rome continues to consume 20,000 tons of wheat. Use label B for Egypt's consumption and label Y for Rome's consumption. Bishop, California is a small town located in the High Sierras between Death Valley and Mount Whitney. In Bishop there is only one pizza parlor, the Pizza Factory. The table below shows the demand for pizza on a Friday night in Bishop. Given this information, use the multi-point line tool to plot Bishop's demand curve for pizza. Make sure to label the demand curve. Price of a large pizza Quantity of large pizzas demanded $50 $40 $30 $25 $20 $15 $10 $5 20 30 44 50 65 180 100 140 Cleopatra was the last Pharaoh of ancient Egypt more than 2000 years ago. As Pharaoh, she aligned two Roman leaders; first with Julius Caesar and then Mark Antony. Her interests in these Roman leaders were not just romantic (she had 1 child with Caesar and 3 with Antony); she also sought to trade the riches of Egypt with Rome to increase her country's level of consumption. Suppose both Egypt and Rome can produce wheat and olives in the following quantities in one year. Egypt Wheat (tons) 100,000 75,000 50,000 25,000 0 Olives (tons) 0 50,000 100,000 150,000 200,000 Rome Wheat (tons) 80,000 60,000 40,000 20,000 0 Olives (tons) 0 20,000 40,000 60,000 80,000 Part 1: Use the line tool to draw the production possibility frontiers for each country (plot the end points only; it is not necessary to plot each point). Label Rome's production possibility frontier PPF-Rome and label Egypt's production possibility frontier PPF-Egypt. Part 2: Assume there is no trade. Cleopatra decides Egypt will consume 75,000 tons of wheat and 50,000 tons of olives. Use the double drop line tool to identify this consumption bundle on PPF-Egypt and label it A. Part 3: Suppose that without trade, Rome currently consumes 20,000 tons of wheat and 60,000 tons of olives. Use the double drop line tool to identify this consumption bundle on the PPF-Rome and label it X. Part 4: Now suppose that Cleopatra recognizes that Egypt can gain from trade with Rome. Cleopatra offers to trade 1.5 tons of olives for 1 ton of wheat. Suppose both countries specialize in the good in which they have a comparative advantage. Use the double drop line tool to identify the post- trade consumption bundles for Rome and Egypt, assuming that Rome continues to consume 20,000 tons of wheat. Use label B for Egypt's consumption and label Y for Rome's consumption. Bishop, California is a small town located in the High Sierras between Death Valley and Mount Whitney. In Bishop there is only one pizza parlor, the Pizza Factory. The table below shows the demand for pizza on a Friday night in Bishop. Given this information, use the multi-point line tool to plot Bishop's demand curve for pizza. Make sure to label the demand curve. Price of a large pizza Quantity of large pizzas demanded $50 $40 $30 $25 $20 $15 $10 $5 20 30 44 50 65 180 100 140

Answer rating: 100% (QA)

Part 1 Production Possibility Frontiers The production possibility frontier PPF is a curve that shows the different combinations of two goods that a c... View the full answer