Assignment 1 Fall 2023 Question 7 (4 marks) The chart below represents the production possibilities for a company that produces tables and chairs. a. Create a properly labeled graph representing the company's combination of choices for these two products. (1 1/2 marks) b. Using the letter "U' indicate on the graph unattainable combinations. (1/2 mark) c. Using the letter 'A', indicate on the graph the attainable but inefficient. (1/2 mark) d. Using the letter 'F' indicate the combinations that are both attainable and efficient. (1/2 mark) e. What is the law of increasing opportunity costs? Explain and provide an example not in the textbook. (1 mark) Tables Chairs 2,125,000 95,000 1,850,000 125,000 | 1,500,000 150,000 1,000,000 180,000 800,000 200,000 700,000 225,000 0 Q Search W X F4 FO FO FZ F8 F9 F10 F1 1 F12 VA Prt Sc/imprecr. & 8 3 V/Aa. Using the data provided in Question 1, calculate the elasticity of demand and elasticity of supply at each price change in the market for leather jackets using the midpoint formula for both supply and demand. Calculate elasticity to 2 decimal places. Because you are calculating the change between two levels, you will have 7 calculations for demand and 7 for supply, for the 8 prices. (2 marks - 1 mark each for correct demand and correct supply elasticities) Price Quantity Elasticity of Quantity Elasticity of Demanded Demand Supplied Supply $160 450,000 50,000 325,000 75,000 $325 285,000 125,000 $500 245,000 160,000 $700 205.000 205,000 $950 175,000 300,000 $1,200 100,000 450,000 $1,500 55,000 525,000 Based on your elasticity of demand calculation, if the price of down-filled jackets rises from $325 to $500 will total revenue go up or down? Explain using the concept of elasticity. You need to answer the first part of this question by explaining how you interpreted the elasticity of demand at this point. How much will revenue change (in dollar terms)? (2 marks - 1 mark for calculation, one mark for explanation using elasticity) c. What is the price elasticity of supply if the price rises from $325 to $500? Is it inelastic or elastic? What does this indicate? (1 mark) Assignment 1 Fall 2023 Q Search O W X SUS Fo FZ F8 F9 F10 F1 F12 A Pri Scamorder