Determine a farmer who can either plant or market or consume his crop. Whatever amount he plants becomes a crop twice the size the following year. For example, if he plants seed from two ears of corn, he gets four ears of corn at harvest. Suppose he starts off with 50 bushels of corn.
1. What will his harvest be next year if he decides every year to market/consume half his crop and plant the rest? What will his consumption be? Discuss how fast will his production and consumption grow over time?
2. How can compare the consumption of the farmer in each of the first five years under plans a. and b?
3. Discuss why might the results of plan be. not be realistic?