2. Suppose that, during an afternoon at Hambre's favorite ski resort, Hambre could either make additional runs down the slopes or produce and sip hot chocolate by the fire in the lodge. Draw a production possibilities frontier (PPF) that describes his production trade-offs between runs skied (by riding the chairlift to the top and skiing down the slope) versus cups of hot chocolate produced and sipped. Hambre's production of each of these goods is subject to constant marginal opportunity costs in production, so be sure that, in the graph, the opportunity cost of one activity in terms of the other is the same at any point on the PPF. Now suppose a new superfast ski lift reduces the time it takes to get to the top of the mountain. Show, on the same graph, how this changes the PPF. 3. In 1985, International Data Corporation (IDC) estimated that 3.7 million desktop computers had been sold atan average price of $1,054. In 2000, the number sold in the United States had risen to 132 million, with the average price decreasing to $700. The change in individuals' tastes and preferences has increased their demand for computers. Explain how the price of computers dropped over the 15-year period from 1985 to 2000. 4. Explain why a shortage occurs in a marketwhere a binding price ceiling exists. Does a price ceiling improve the operation of the market