I choose IKEA COMPANY Production possibility curve (PPC) Scenario1: a. If your company can make two goods, use a numerical table and list different combinations of two goods your company can make b. Draw a PPC and show the different combinations on the graph. Show the attainable and unattainable output levels on the graph. Show the opportunity cost of one good in terms of another. c. d. What happens to the opportunity cost? (Increases, decreases or remain constant) LAW OF DEMAND Scenario 2 a. If the company decides to eam more profits and hence decide to increase the price of their product. Use a numerical table of price and demand to explain. b. What effect this increase in prices will have on consumers demand? Is it called a change in quantity demand or change in demand? Why? c. Draw and show this effect with the help of a demand curve. ELASTICITY OF DEMAND Scenario 3: a. If your company's product has many substitutes in the market, what happens to the elasticity of your product? If your company's product has few substitutes in the market, what happens to the elasticity of your product? If your company's product has no substitutes in the market, what happens to the elasticity of your product. b. Use a numerical data of price and demand to show the price elasticity of your good.. c. Draw and show this effect of change in price on the demand for your company's product with the help of a demand) curve. LAW OF SUPPLY Scenario 4: a. Suppose your company produces a complementary good for its product? What happens to the supply of one complementary good if the price of other complementary good falls.? b. Use a numerical table of prices and supply to explain. c. Is it called a change in supply or change in quantity supply? Scenario 7: L DEMAND & SUPPLY EQUILIBIRUM Scenario 5: a. Use a numerical table and show the demand and supply equilibrium for your product. b. During COVID-19 what happened to the demand for your product? Draw the shift in the demand curve and show. c. How will this change affect the equilibrium price and quantity of the good? Give reasons for your answers. Short run product and cost Page IV of 10 L Scenario 6: a. Use a numerical table and show different worker and output levels (TP) and calculate MP & AP in the short run. b. Draw and show the behavior of TP, MP and AP curves. c. Use a numerical table and show different output and cost (TC) in the short run and calculate TFC, TVC, AC, AVC, AFC, MC. d. Draw and show the behavior of TC, TFC, TVC in the short run in a separate graph. Draw AC, AFC, AVC, MC in separate graph. Show the profit maximization point in the graph. a. Is your company operating in a perfect market? If yes/no give reasons. b. Use a numerical data to show your firms output and revenue in a perfect market in the short run. Calculate TR, MR, AR total profits, TC, MC and ATC. C. c. Draw TC and TR curves in one graph. d. Draw MC, ATC, AVC and MR in one graph. Show profit maximization, shutdown point and losses in the graph I choose IKEA COMPANY Production possibility curve (PPC) Scenario1: a. If your company can make two goods, use a numerical table and list different combinations of two goods your company can make b. Draw a PPC and show the different combinations on the graph. Show the attainable and unattainable output levels on the graph. Show the opportunity cost of one good in terms of another. c. d. What happens to the opportunity cost? (Increases, decreases or remain constant) LAW OF DEMAND Scenario 2 a. If the company decides to eam more profits and hence decide to increase the price of their product. Use a numerical table of price and demand to explain. b. What effect this increase in prices will have on consumers demand? Is it called a change in quantity demand or change in demand? Why? c. Draw and show this effect with the help of a demand curve. ELASTICITY OF DEMAND Scenario 3: a. If your company's product has many substitutes in the market, what happens to the elasticity of your product? If your company's product has few substitutes in the market, what happens to the elasticity of your product? If your company's product has no substitutes in the market, what happens to the elasticity of your product. b. Use a numerical data of price and demand to show the price elasticity of your good.. c. Draw and show this effect of change in price on the demand for your company's product with the help of a demand) curve. LAW OF SUPPLY Scenario 4: a. Suppose your company produces a complementary good for its product? What happens to the supply of one complementary good if the price of other complementary good falls.? b. Use a numerical table of prices and supply to explain. c. Is it called a change in supply or change in quantity supply? Scenario 7: L DEMAND & SUPPLY EQUILIBIRUM Scenario 5: a. Use a numerical table and show the demand and supply equilibrium for your product. b. During COVID-19 what happened to the demand for your product? Draw the shift in the demand curve and show. c. How will this change affect the equilibrium price and quantity of the good? Give reasons for your answers. Short run product and cost Page IV of 10 L Scenario 6: a. Use a numerical table and show different worker and output levels (TP) and calculate MP & AP in the short run. b. Draw and show the behavior of TP, MP and AP curves. c. Use a numerical table and show different output and cost (TC) in the short run and calculate TFC, TVC, AC, AVC, AFC, MC. d. Draw and show the behavior of TC, TFC, TVC in the short run in a separate graph. Draw AC, AFC, AVC, MC in separate graph. Show the profit maximization point in the graph. a. Is your company operating in a perfect market? If yes/no give reasons. b. Use a numerical data to show your firms output and revenue in a perfect market in the short run. Calculate TR, MR, AR total profits, TC, MC and ATC. C. c. Draw TC and TR curves in one graph. d. Draw MC, ATC, AVC and MR in one graph. Show profit maximization, shutdown point and losses in the graph