Business Economics

Discussion 1 Alternative combination Fan (unit) a. Plot the production possibilities curve, where the Y axis represent units of air conditioners and the X axis represents units of fans. b. Calculate the opportunity cost : i, for the rst 10 units of fans. ii. if the production increase from 15 to 20 units of fans. iii. if the country produces the maximum amount of conditioners c. on the same min (8.), illustrate the effect of an increase in technology on the production of air conditioner. d. On the same PPC, show the combinations of 10 units of fans and 150 units of air conditioners. Label the point obtained as Y. Indicate whether this point is scarcity, choice or inefciency. Discussion 2 With the aid of diagram, explain the impact of higher income level to the demand curve