cos at part (a) my PPF very weird. the k constraint on the Y(vertical) 0to200 and s constraint on X(horizontal)0to180
I got the same answer as Lolita_5 for all the first three parts. The constraint for K is horizontal as it can be purely used to produce Y, while for the Storage constraint (s), it is vertical as it only limits the production of X.
But i can't seem to understand Part D. Is the question asking for us to
1) find the new production point at the trade price or
2) find out the corresponding quantity of Y produced.
If its 2), my answer would be that the economy will specialize in producing product X, producing 180 units of X and 40 units of Y. They can then trade X for Y and achieve a consumption of either [0 X and 220 Y] or [180 X and 40Y]
Kindly advice if I am wrong.
PS: Thanks for responding to my query!