A tropical storm creates a shortage of the items needed in the production of Good B. Explain how this would affect the production possibilities curve.

Choose the correct option

a) PPF shift inwards

b) PPF shifts outwards

c) Move to a point inside the PPF

d) Move outwards on Good A axis only

e) Move outwards on Good B axis only

f) Move inwards on Good A axis only

g) Move inwards on Good B axis only

2. Carefully explain what is happening in the following markets. Indicate the impact if any on demand, supply, price and quantity

Scenario 1

Markets for 21ft Ladders

Reels 21-FOOT LADDER BORDER RENTALS FENCE OPEN SOON!2021 Change in price uncertain Change in quantity uncertain Market for 21 ft Lad Decrease equilibrium price Increase equilibrium quantity Increase towards equilibrium No Impact LOPER Decrease towards equilibrium TOPE Excess supply Increase equilibrium price Decrease equilibrium quantity Shift Inwards / to left Shift outwards / to right Excess demand Impact on demand Choose. Impact on supply Choose. Impact on price Choose. Impact on quantity Choose