Butter vs. Guns 10 -"PPF tradeoffs or Opp Cost ONWAYAHOO Scarcity Inefficiency 0 50 100 150 4. How would the US PPC shift if California were to become an independent nation. Explain your answer. (1) Answer. 5. The PPC of a nation is contingent of 5 ingredients, summed up as resources and technology. This means they five are: (1 point each) Answer. 1. 2. 3. 6. Using the graph below, explain the following: (3 points) a) Demand increased, though prices remained the same. Do you agree? Explain. Answerb) The amount purchased at $20 increased from 30u to 60u. The explanation can't be in the price, since it remained the same. What's the correct explanation then? Answer c) If I told you the graph below shows consumers expected prices to drop in the future, would you agree? Explain. Answer Price $35 $30 $25 $20 $15 Demand New Demand SO Quantity 10 20 30 40 50 60 70 80 (in thousands) 7. Assume the graph below is about Tesla $3. In the graph below, what would have caused the jump from point A to point C for Tesla S3? For each correct one you write, you get 1 point. You must explain your choices. (Hint: There are as many answers as there are non-price determinants of supply) Answer.Change in Quantity Supplied vs. Shift in Supply. Change in Quantity Price Supplied B Shift in Supply Quantity of apples 1. Based on the table below, how many units should this firm produce? Explain your answer. (2 points) Answer. Total Marginal Total Marginal Quantity Revenue Revenue Cost Cost Profit 0 3 -3 4 8 -4 8 11 -3 12 13 -1 16 14.5 1.5 DOO WOGA WN P 20 16 4 24 18 6 28 21 32 26 36 34 10 40 46