Pro-dcction Possioil':ies FrontiE' {PPF} Mode: 9] A small economy has a given amount of land, labor {25 000 workers] and capital {machinery and tools]. Suppose that an economy produces only two goods during the Pandemic: Vaccines {VVVavj and Vitamins {Vi}. Below is a table that shows the production possibilities faced by the economy: Allocation ............................. Vaccines {per week} ..................... Vitamins {bottles per week] A D 75 B 10 70 C 20 60 D 30 45 E 40 25 F 50 0 Questions: {a} Use the table above to produce a diagram of the economy's production possibilities frontier {PPF} for Vaccines and Vitamins. Label Vaccines on the Xaxis and Vitamins on Yaxis. {bi If all resources were allocated to the production of Vaccines, how many could be produced? If all resources were allocated to the production of Vitamins, howr man's.r could be produced. Label the Specialization Points on the diagram. {c} List the four assumptions associated with the PPF model (d) Calculate the opportunity cost of.. (i) Increasing the output of Vaccines from 20 to 30 per week (ii) Increasing the output of Vaccines from 40 to 50 per week Increasing vitamin production from 25 to 45 per week (iv) Increasing vitamin production from 70 to 75 per week (e) What is meant by the Law of Increasing Opportunity Cost? Use the table above to illustrate this Law... (f) Explain how each of the following will affect the PPF you drew in part (a)... (i) There is an increase in labor due to an increase in immigration (all else equal) A new technological method allows vaccines to be produced more quickly (all else equal)Demand/Supply Model: 1) Consider the following demand/supply schedules for Whey Protein Powder, used to build muscle in weight training... Price (P)... Quantity demanded.. ...*:.....Quantity Supplied.. ....:..:Surplus/Shortage ($/Pound) (Pounds/month) (Pounds/month) 40.00.... .O..... 600 35.00. 100 500 30.00. 200.. .400 20.00.. .....400.. .200 15.00...." .500.. ...100 10.00. 600.Questions: [6} lb} [Ci {d} Draw a diagram ofthe market for Whey protein powder, showing the demand and supply curves. What is the equilibrium price and quantity of Whey powder exchanged in the market? Suppose that the local health store decides to charge 520 per pound for Whey powder? Is there a surplus or shortage at this price? Explain. How would the market price adjust as a result? Explain how each of the following changes would affect either the demand side or supply side of Whey protein powder. Draw a separate diagram for each case and show the effect on equilibrium price and quantity... {i} There is an increase in income {all else equal} {ii} The price ofwhey, used to produce the protein powder, increases {all else equal} {iii} Gyms reopen after Covidlg is under control {all else equal} 2] {iv} There's a decrease in the price of Soy protein powder, a substitute in consumption for Whey protein powder {all else equal} M There's an increase in the price ofwhev protein powder {all else equal} Distinguish between a change in quantity demanded and a change in demand. Provide diagrams and a written explanation... An economist notices that the equilibrium price of apples has decreased and more apples are exchanged in the market. Did a shift of demand or supply cause this change? Use a diagram to explain