1. A resort community is trying to respond to one of the problems caused by increasing population into the community. The community is a popular spot for affluent families seeking a second home away from the frenzy of urban living. New construction of these nice homes will certainly bring more affluent families who will support local businesses and the tax base of the local community. At the same time, there exists a shortage of more affordable homes for the full-time residents who work in the local businesses, build the homes, provide needed services, etc. Because suitable building sites are limited and capital, materials, and labor needed for home construction are fixed, the community must choose what mix of new housing makes sense. Since the vacation homes require more land, are larger in size, and contain more costly and time-consuming features, the community can roughly build one vacation home for every 3 affordable homes. (Affordable homes are usually defined as homes that can be purchased by households with below average income.) Using the data provided below, construct a production possibility frontier for this community. Be sure to label each axis carefully. (See figure 2.3 in the text) Affordable Homes Vacation Homes 0 30 18 24 36 18 54 12 72 6 90 0 Where would recommend the community operate on its ppf? Because why? What would the community need to do it felt it necessary to build 24 vacation homes and 36 affordable homes? Explain.