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Two individuals are stranded on an island. Bob and Jill.

By themselves they can produce:

Bob: 5 fish & 5 coconuts
Jill: 5 fish & 5 coconuts

If they specialize and trade, they can produce:

Bob: 20 fish
Jill: 20 coconuts

What would the supply and demand graph look like for this situation? What would be the price? Would Bob end up with say 13 fish and 11 coconuts. Would Jill end up with 7 fish and 9 coconuts? What determines this ratio or price?

If Sam then ends up on the island and can produce by himself 20 fish or 20 coconuts, does this matter?

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  • $\begingroup$ This seems like a homework question. You have to show your attempts at it and then ask for help with the part that you cannot do. $\endgroup$ – Arthur Tarasov Nov 25 '15 at 5:33
  • $\begingroup$ This is absolutely not a homework question. It's been 12 years since I took micro-economics LOL... It's a hypothetical question that I'm not had an answer. $\endgroup$ – user2662680 Nov 25 '15 at 23:03

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