1. Person A works 8 hours in the day, and can produce 2 gallons of water per hour or 1 unit of \"other goods" per hour. Plot the opportunity set, or the budget constraint. What is his opportunity cost of a gallon of water? 2. Person B works 10 hours in the day, and can produce 1 gallon of water per hour or 1 unit of \"other goods\" per hour. Plot his opportunity set. What is his opportunity cost of water? Who has the comparative advantage in water, A or B? 3. Person C works 9 hours in the day, and can produce 1 gallon of water per hour or 3 units of \"other goods\" per hour. Plot his opportunity set. What is his opportunity cost of water? 4. Combine the 3 to form the production possibilities frontier. Interpret the opportunity cost of water on this PPF. What is the opportunity cost of water? 5. Now let's enlarge the size of our economy in terms of people producing water and other goods. What happens to the shape of the PPF'? ?roblems 6 13 are based on the demand and supply schedules for gasoline below (all quantities ire in thousands of gallons per week): Price per gallon Quantity demanded Quantity supplied 8 mummnmm I-Mm-P-and qmmLmMFG