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?