2. The production possibility boundary for Edward the carpenter is given below. a) Draw a Production Possibility frontier (PPF) for Edward. Clearly Identify the Attainable and Unattainable areas of production. (6) b) If Edward produces 30 Tables and 30 Chairs with same level of resources, is it an efcient level of production? Why? (3) c) What is the opportunity cost of increasing the production of \"TABLE" from 10 to 20 units? (3) d) Supply of Wood has decreased due to strict Government regulation on cutting down trees. Draw the new PPF. (3) e) Edward has two factories. One produces chairs and the other produces tables. The factory that produces chairs caught on fire and some of the raw materials got destroyed. However the factory that produces tables remained intact. Show the shift from OLD to NEW PPF. (4) 3. The demand and supply equations for commodityX are P = 60 %00 and P = 20 +Q$ respectively. (a) Sketch the demand and supply curves in an accurately labeled diagram. (2) (b) Find the equilibrium values of price and quantity. (4) (c) Copy and complete the following table (show the steps of your calculations) (6) P Q9 as 20 30 40 (d) Calculate the price elasticity of demand for commodityX when its price increases from 30 to 40. Is it price elastic or inelastic (say why)? (2+1) (e) Calculate the price elasticity of supply for commodity X when its price increases from 30 to 40. Is it price elastic or inelastic (say why)? (2+1) (f) Assume that the coefficient of price elasticity of supply which you calculated does not change, by what percentage would the quantity supplied of X change if its price fell by 20%? Would the change be an increase or a decrease? l2)