Question 1 Consider a small island economy that has a limited amount of land that is available for commercial use. The city planners are considering two possible types of commercial property: Office Buildings and shopping Centres. The possible combinations of office buildings and shopping centres is depicted by PPC 1 in the diagram below (the blue line). Office Buildings 10 9 8 st 3 2 1 0 0 1 2 3 -PPC 1 4 -PPC 2 5 6 7 Shopping Centres 7 pts 8 Answer the following (For Parts A to E, enter your responses rounded to whole numbers i.e. no decimals): A) If the city planners decide to use all their land resource for office buildings, how many office buildings can they 'produce. The number of office buildings is B) If the city planners decide to use all their land resource for shopping centres, how many shopping centres can they 'produce'. The number of shopping centres is C) Suppose that 3 shopping centres currently exist and the city planners wish to construct an additional shopping centre. What is the opportunity cost in terms of office buildings? The opportunity cost is office buildings. D) If the city planners decide to build half the maximum number of shopping centres, how many office buildings and shopping centres can they 'produce. The number of office buildings is The number of shopping centres is E) Suppose an urban regeneration program creates more space for shopping centres and the new production possibilities are depicted by PPC 2 (the red line). How would your answer to part D change? The number of office buildings is The number of shopping centres is