please explain all these make sure to use diagrams in the first part and answer all questions:

True False (45 points) Using an appropriate diagram, explain whether three of the following statements is true or false, and why. If you answer more than three, your best three answers will be used. Each answer requires a diagram and an explanation. 1. The recent fall in the price of gasoline has caused an increase in the demand for SUVs. The resulting increase in the price of SUVs has caused an increase the supply of SUVs somewhat reducing the shortage. 2. If a good is inferior, when the supply decreases so does the price. 3. If there are decreasing opportunity costs, the slope of the PPF does not show the opportunity cost of the good on the horizontal axis 4. If all resources are unique the PPF will not be linear.1. (10 points) Terry can clean the kitchen in 60 minutes and complete a switch game in 1.5 hours (90 minutes). Cathy can clean the kitchen in 45 minutes and completes a switch game in 1 hour. In which good does Terry have a comparative advantage? Explain and Show All Work. 2. (10 points) Assuming increasing opportunity costs, draw a diagram that shows how a country can consume outside of its PPF by engaging in trade. Be sure to indicate the production and consumption points for this country. Be sure to indicate the amount of exports and imports for this country. 3. (10 points) Assuming the following schedule for a country able to produce pasta and coffee: . Pasta [Coffee 0 120 5 110 10 95 15 75 20 50 25 0 a. Draw the PPF next to the above schedule, labeling everything. b. What is the opportunity cost of the 11t unit of Pasta? Show all work. c. What is the opportunity cost of the 115 unit of Coffee? Show all work. (35 points) Assume that the US and Canada are able to produce food and clothing using the following amounts of labor: Canada uUs Food 15 labor hours 10 labor hours ' Clothing 20 labor hours 15 labor hours a. (6 points) What are the autarky relative prices in the US and Canada? Explain your answer. b. (6 points) Which country has a comparative advantage in food? In clothing? Explain your answer. c. (2 points) Which country has an absolute advantage in food? In clothing? Explain your answer. Assume that Canada has 400 labor hours and the US has 300. d. (14 points) Draw the PPF for each country, assuming constant opportunity costs. e. (4 points) Assume that each country produces 10 Clothing in Autarky. How much food does each country produce in Autarky? Explain your answer. Label the autarky production points C. and US,, respectively, on your PPFs drawn above in part d. f. (3 points) Assume each country specializes completely in the good in which it has a comparative advantage. Label the post-trade production points Cr and USy, respectively, on your PPFs drawn in part ins from ialization an