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Consider an economy which produces two goods, wine and cheese, whereby wine production is land-intensive and cheese production is labor-intensive. a. Suppose the government decides

Consider an economy which produces two goods, wine and cheese, whereby wine production is land-intensive and cheese production is labor-intensive. a. Suppose the government decides to turn all public parks into land used in production, thereby increasing the supply of land available to producers. Show how this will affect the production possibilities of the economy. (use a graph) b. Suppose the relative price of cheese is unchanged following biased growth. Compare the new production mix with the original production mix. c. If the government wants the output of cheese to remain constant, despite the biased growth, what must happen to the relative price of cheese?

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