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Consider the following production possibility frontier. Use this to answer Question 3. 3. 5. _ , )3 Fill in the blanks. E'g' The opportunity cost
Consider the following production possibility frontier. Use this to answer Question 3. 3. 5. _ , )3 Fill in the blanks. E'g' The opportunity cost of producing either ._ pretzels or beer is and the frontier is P\" to the origin. (a) Decreasing; convex (b) Increasing; convex (c) Constant; convex (d) Variable; convex a; (e) Decreasing; concave " (1') Increasing; concave l (g) Constant; concave ' (h) Variable; concave LUBE!\" > gm. Consider two separate and unidentified goods, A and B. If the price of A goes up, and the demand curve for B shifts to the right, then (a) The demand curve for B shifts to the left, not the right. (b) The demand curve for B will not shift, but the quantity demanded of B will increase. (0) The two goods are complements. (d) The two goods are substitutes. (e) The goods are normal goods. Which of the following statements is n_ot true about the demand curve? (a) The demand curve shows the maximum price consumers will pay for various quantities of a product. (b) Movements along a demand curve reflect consumer's response to price changes. (c) The demand curve shows the quantities that consumers will purchase at various prices. (d) Movements along a demand curve reflect the changes in consumer's preferences
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