Q14 The given graph shows a production possibilities curve for Dynamin, an economy that produces two goods-skateboards and bicycles. 10 marks Production Possibilities Curve for Dynamia a (0, 40) 40 6 (1, 38) c (2, 32) Skateboards d (3, 20) O LO e (4, 0) - m Bicycles Calculate the opportunity cost of bicycles in terms of skateboards when Dynamia moves from point a to b, b to c, c to d and then d to e. Do your answers illustrate the law of constant opportunity costs ? Why ? How would you describe production in Dynamia, If 20 skateboards and 2 bicycles are produced? E Can Dynamia produce 3 bicycles and 32 skateboards? Why? 2 How a technological improvement in the production of skateboards would affect the production possibilities curve? S How an increase in Dynamia's supply of skilled labour would affect the production possibilities curve of skateboards and the bicycles