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Sp21 econ 2010-200 test 1 (take-home) Marc Santugini 1. PPF and CPF for 6 points. Jane and Tarzan can produce food and luxury goods Tarzan's production possibilities frontier (PPF) is defined by QTarzan + 2Qgarzan = 8 where Qtarzan is the quantity of luxury goods and QForzan is the quantity of food produced by Tarzan. . Jane has 10 hours of work. Each hour of work yields 1 unit of food or 0.5 units of luxury goods. Suppose that Tarzan and Jane trade with each other (i.e., no outside merchants). Tarzan and Jane agree to trade goods under the following conditions: 1) the terms of trade are 1 unit of food in exchange for 1 unit of luxury goods; and 2) each specializes according to his/her comparative advantage. Sketch on two different graphs (one for Tarzan and one for Jane) the individual PPFs, the individual CPFs, the individual points of production, and shade the areas corresponding to the gains from trade. Clearly label your graphs (i.e., indicate values for slopes, intercepts, endpoint(s), and points of production). Note that luxury goods are on the y-axis and food is on the x-axis. Ofarzan TARZAN plane JANE CTarzan Clane Ofarzan Qjane CTarzan Clane 1