2. Consider the following scenario. Xavier and Yarniis can switch between producing baskets and produc ing birdhouses. Xavier uses 3 hours to produce 1 basket and 2 hours to produoe 1 birdhouse. Yannis uses 1.5 hours to produce 1 basket and 2 hours to produce 1 birdhouse. In 24 hours, Xavier can produce 3 baskets and 12 birdhouses, and Yannis can produce 16 baskets and 12 birdhouses. If they decided to trade with one another, at which of the following prices would both Xavier and Yannis gain from trade?I Justify your answer a. 3G baskets for 15 birdhouses b. 31'.) baskets for 13 birdhouses c. 39 baskets for 24 birdhouses 3. Before the rst Gulf War, Kuwait had the capacity to produoe a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on re. Draw Kuwait's PPF before and after the war, assuming that the only two goods produoed are oil and food. Further assume that setting the oil wells on re did not affect Kuwait's ability to produoe food. Explain why the PPF before the war is different from the PPF after the war. 4. Last year a very severe ice storm hit the north oounties of New York state, and the states of Vermont and Maine. Electric poles were down and no one had power for days. It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time. Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters