The table below contains production possibilities data for capital goods and consumer goods in the economy of New Harmony. Capital Goods Consumer goods a. Draw the production possibilities curve (PPC) for New Harmony. Plot each point in the graph below using the tool PP1 for part (a) and PP2 for part (a). Plot 5 points in the graph below for part (a) and another 5 points for part s have been plotted. click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. Production Possibilities Curve For New Harmony Tools pet Consumer goods Pp PP1 32 Capital goods b. What is the total cost of the first 14 capital goods produced? The total cost is [ 10 unit(s) of consumer goods. C. Assuming the economy is producing combination B. what is the approximate per-unit cost of an additional capital good? The per-unit cost of an additional capital good is [ unit(s) of consumer goods. d. Assuming the economy is producing combinat ate per-unit cost of an additional capital good? Round your answer to 1 decimal place. The per-unit cost of an additional capital good is [ 3.5] unit(s) of consumer goods. e. What law Is Illustrated in your answer o parts (c) and (d)? The law of [increasing cost v |is illustrated by parts (c) and (d). f. Fill in the table below assuming that, 10 years later, the output potential of capital goods has increased by 50%. while the output potential for consumer goods has risen by 6 units for each combination A through E. Capital Goods consumer goods g. Show the new PPC after the output potential of capital and goods has risen. Use the tool PP2 In the graph above to draw the new PPC after the output potential has risen. h. As a result of the economic growth, can New Harmony now produce 24 capital goods and 26 consumer goods? New Harmony [is able to produce this combination of goods. Required Information The maximum production possible in Rome and in Cathay are as follows: 40 bread or Cathay 20 bread Or 40 figs each country is self-sufficient (no trade) and each allocates one half of its resources to producing each of the two products, what will be the output in each country? O 40 bread and O figs in Rome a bread and O figs in Cathay. 20 bread and 10 figs in Ron bread and 20 figs in Cathay. O 0 bread and 20 figs in Rome and O bread and 40 figs in Cathay. O 40 bread and 20 figs in Rome and 20 bread and 40 figs in Cathay. f each country is self-sufficient (no trade) and each allocates one half of its resources to producing each of the two products. what is the combined output in the two countles? 60 bread and O figs. 30 bread and 30 figs. 60 bread and 60 figs. o bread and 60 figs. If each country specializes in the production of what It does best and trades with the other, what Is the combined output? 20 bread and 20 figs. ( 60 bread and 60 figs. 40 bread and 40 figs. ( 30 bread and 30 figs. If each country specializes in the production of what it does best, what are the gains from trade? There are no gains. ( 20 bread. 20 figs. 10 bread and 10 figs. Required Information The following table shows the Initial weekly demand (D1) and the new demand (D2) for packets of pretzels (a bar snack): Quantity Quantity Price ($) Demanded (D1) Demanded (D2) 1040 Refer to the Information above to answer this question. In order to produce the change in demand from D1 to D2. what might have happened to the price of a substitute product like a packet of nuts O ble must be buying more. It has increased. O It has not changed. but people must be buying less. It has decreased. Refer to the Infor ation above to answer this question. In order to have produced the change in demand from D1 to D2, what might have happened to the price of a complementary product like beer? ( ) It has not changed. but people must be buying more. It has increased. It has not changed, but people must be buying less. ( It has decreased. The graph below depicts the market for rice in the country of Shiva. a) What is the present equilibrium price and quantity purchased in this market? Price: $ Quantity purchased: million kilos b) How much, in total, are rice buyers paying for this quantity? $ million ) Suppose that the government introduces a price floor of $7 per kilo. How much, in total, will rice buyers now be paying? Price ($) IX $ million d) As a result of the price floor, what will be the total amount of the surplus? Surplus: million kilos What will be the dollar amount of this surplus? Amount of surplus: $ million Quantity per period (millions of kilos) Who will be responsible for buying this surplus, the government or the farmers? Buying the surplus amount is the responsibility of the: government v Suppose that the government is concerned with the size of the surplus and is thinking of replacing the price floor with a producti quota of 4 million kilos. e) If it did so, what would be the new price, quantity, and total revenue of farmers? Price: $ Quantity purchased: million kilos Total revenue: $ 'million Alternatively, the government is also considering introducing a $3 per kilo subsidy for the rice farmers. f) If it does introduce the subsidy. what would be the new price, quantity, and total revenue of farmers? New price: $ 3 7 million kilos Total revenue: $ 21 million g) Under which scheme-a price floor, a quota, or a subsidy-will farmers receive the most total revenue? Subsidy Refer to the above inform Multiple Choice O $30 and 50. O $50 and 100. $40 and 100. $60 and 100. O $50 and 80. Refer to the above information to answer this question. Assume that initially the market is and quantity