DSE 2004 Q.24 and Q.25

Posted by Do bats eat cats? on Jun 23, 2013; 1:13pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2004-Q-24-and-Q-25-tp7582771.html

Link to paper

I have no idea how to do these questions. I can't quite understand how the economy described in situation VII is even relevant. I'm probably missing something trivial, so any help or even a nudge in the right direction will be appreciated.

Thanks!