Page I > 012 O ZOOM Bicycles (1000's per year) Apples (1000's pounds per year) 0 60 l 50 2 30 3 0 a. Graph the PPF of this economy. What can you say about the shape and the slope of the PPF. b. Explain the opportunity cost of producing Apples. 0. Suppose the economy is currently producing 2,000 bicycles and 30,000 pounds of apples, What is the opportunity cost of producing an additional 1,000 bicycles? d. Can the economy produce 2,000 bicycles and 20,000 pounds of apples? What do you call this level ofproduction? e. In What situation the economy can produce 1,000 bicycles and 55,000 pounds of apples? Question 2: Using a supply-and-demand graph and assuming competitive markets, show and explain the effect on equilibrium price and quantity of the following: a. Increased graduations of physician assistants on the market of health care services. b. An anti-smoking campaign reducing the smoking in the population on the market for hospital services