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n Islandia, a small economy, Jack and Jill shall make their production and consumption decisions together. Jack can produce either 10 kg banana or 14 kg tea per day. Jill can produce either 8 kg

n Islandia, a small economy, Jack and Jill shall make their production and consumption decisions together. Jack can produce either 10 kg banana or 14 kg tea per day. Jill can produce either 8 kg banana or 20.8 kg tea per day. Suppose now they are open to trade with the rest of the world. The price of banana is $2/kg and the price of tea is $1/kg in the world market. Suppose Islandia is small enough that its behavior will not affect the world prices. If they are going to consume 7 kg banana, then, they will end up consuming a total of [Answer] kg tea. (In decimal numbers, with two decimal places, please.)

Apr 16 2021 View more View Less

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