27. Below is a production possibilities scheduled for a hypothetical company that produces only two goods - skateboards and bicycles: Production Scenario Skateboards Bicycles 40 0 B 38 C 32 2 D 20 0 4 a) Graph the production possibilities curve, putting skateboards on the vertical axis and bicycles on the horizontal axis. What shape does this new curve have? b) Calculate the opportunity cost of bicycles in terms of skateboards when the economy moves from: i. Point B to C: ii. Point C to D: c) Do your answers above illustrate the law of increasing opportunity cost? Why or why not? d) If 32 skateboards and 1 bicycle are produced, how would you describe production in this economy? e) On your graph, show how a technological improvement in the assembly of bicycles would affect the production possibilities curve. 28. At a price of $1.50 per bushel, the supply of wheat in Canada is 4 billion bushels and the demand is 1 billion bushels. When the price decreases to $1.40 per bushel, the supply decreases to 3.5 billion bushels and the demand increases to 1.5 billion bushels. Assume that both the supply and demand curves are linear. a) What is the equation for the demand curve for wheat? b) What is the equation for the supply curve for wheat? c) Using these equations, what are the equilibrium price and the quantity of wheat