Alert wen tis questions newer x Donmons tne cheng Sy Ao oto ick (80K+) Chegg Study Textbook Solutions Expert@Q&A Practice ev Ul Find solutions for your homeworkQuestion: 3. Since the time of the Galactic Republic, there are two kinds of currencies in planet Utapau: w... nce the ne ofthe Gate Republi Here ae Wo ner of carves planet Usps ‘wtp dan capa. venting the any has 2 wupupl price ane a raat ec. Everyone has two incomes: wupup income and dugg income. In erder to buy an abet Din Dian has to pay that objets wupup ace In wupp money ants rugat pce in ruggt moey. The ‘shops simpy have two cash regsters, an you have t py at oth retest uy an obec) ‘Slorbiden to ade ne tn of money fr theater, and hs prohibition isl enfored by ‘rapa’ ities ana ecient monetary pai. There ae jst wo consumer goods on Uap ‘sus ane banana Al preter moce ofeach god oles. The wip prices are 1 wp per unt of sushi and 1 wp per unit of banana. The drat prices are 2 dr per unit of sushi 3rd per unto nana. | aw the drugeat budget and the wupup budget for Din arn whese wil nome 1210 and whose erugat income 30. Shade inthe budget et containing ll of he ‘commodity bundles hat Din can afford given his two budget constrains. 1 Garabune aces te same prices that in faces a has the same arugat nce 35D, tut cara asa wail income of 20. Explain ow ts that ara wil nat spends entre upp incre co mater what tastes may be (Mt Dea Car's badge ines) A group of radical economic reforms bel thatthe cen ules 2 nf. Why Shou everyone have t pa two prices for everthing?” they ask. They propose the folowing scheme Everyone wll cote thave to crn, every e008 wl hve 3 opin! pce and a cruggat price, and everyone wil have a wupup and a crugga Income. ut nobody bss pey both prices Instead everyane on ULapOU mus dedore sa tobe etner 2 WupiopeMoney Purenaser (WMP) 0 2 DrgEat Money Purchaser (OI before t buys nyting at all WP must make al of tee purchaes in vBRp money atthe wil pcs, pending ony ther wopipl comes. DMP must ake a thet purhases in crggat money, spendig ony hee sega incomes Suppo ha ‘in tas the same Income after ths reform, and hat pies donot change. Before ecaring which kd of purchaser wil be, On contemplates the set of commodity turales tit cul ator by mating one cecaraton oF the other. Lt ur cal 3 ‘onmodty bund atainable fin can ators y deaing Hse 0 be a WP ant buying the bundle with wupiupi money or if Din can afford the bundle by declaring itself to be a DMP and buying it with druggat money. Draw in a graph and shade in all of the affordable bundles. Show transcribed image text Expert Answer Anonymous ancwered thisIn a) Din Djarin’s income in terms of Wupiupi=10 Din djarin's income in terms of Druggat=30 Wupiupi budget price of sushi=iper unit price of Banana=1per banana slope of budget line= 1/1 Which implies to increase 1 unit of banana 1 unit of sushi is to be sacrificed banana sushi 6 010 19 28 37 46 55 64 73 82 a1 100 Figure( a ) shows Budget line. all combination on it and inside are affordable. Combinations out side it are un affordable. Druggat budget Income= 30price banana =6 price sushi=2 slope of budget line =2/6=1/3 it implies to increase 1 banana 3 sushi should be sacrificed banana sushi 015 112 29 36 43 so Durggat budget line is shown in fig b b) budget set 0 cara Dune Druggatt income= 30 wupiupi income =20 price banana =2 price sushi=6 slope of budget line =3/1explaination of remaining part part cis in image 0. Comments Was this answer helpful? (wm + | [me | Up next for you in Economics 2. A single firm ‘A monopolist faces a