Questions 1-4

1 . Using the PPC table below. calculate the opportunity cost of producing One more of one good in terms of the other (as asked below ) , between each point ( between A and B ; B and s ;etc ) . combination consumer capital 1. what is the app cost of one consumes A O 837 good from A to B B 140 820 280 D 767 2 . What is the app cost of one consumer good 420 669 from B to C 560 567 700 O 3 . What is the app cost of one consumer good from ( to D 4 . what is the opp cost of one capital good from Fyof 5 . what is the opp cost of one capital good from E to D 2 . The demand for product X depends on the price of product X as well as the average household income ( Y ) according to the following relationship 2 d x = 750 - 40 p to. DOLY The supply of product * is positively related to own price of product & and negatively dependent upon w , the price of some input , This relationship is expressed as ; Q xx = 180 + 40 P - 6 w Given that Y = 10 ,000 and W = 10 , what is the : 1 . Equilibrium Price ? 2 . Equilibrium quantity ? Suppose that income increases to 20,000 and W remains constant . What's the new: 3. Equilibrium price ? 4. Equilibrium quantity? Assuming that income remains constant at 20,020 and W increases to 15 , whats the new : 5 . Equilibrium price b. Equilibrium quantity 3. Assuming a normal market , with a positively sloped supply , and negatively sloped demand. which is initially in equilibrium . Given the situation stated below , fill in the blanks matching the effect as either : increase, decrease , no change or indeterminate . A new process is discovered that greatly improves the quality of digital prints and of the same time, significantly reduces the price of printing photos. As a result ( a ) supply will ? ( 6 ) Demand will ! ( C) Equilibrium price will ? ( d) Equilibrium, quantity will ! 4. Assuming a normal marked, with a positively and negatively sloped demand , which is initially in equilibrium . Given the situation stated below, fill in the blankly matching the effect as either : increase , decrease , no change or indeterminate Technology improves for the production of IBM computers, and consumers preferences for Apple computers increases due to Apple's unique application programs ( a ) supply will ? ( 6 ) demand will ? ( C ) Equilibrium price will ? (d ) Equilibrium quantity wall ! Hitroy