v O O (. () ENG 4:44 PM O X AutoSave On . 43 Assignment 1 (2).docx(rintu mam) - Last Modified: 7m ago 9 Search Khalid Mahmud File Home Insert Draw Design Layout References Mailings Review View Help Share Comments The table below contains production possibilities data for capital goods and consumer goods in the economy of New Harmony. Capital Goods Consumer goods 1. Draw the production possibilities curve (PPC) for New Harmony. 48 42 44 B2 A 40 B 36 C Consumer goods D2 D PP2 PP1 E 52 0 8 16 24 32 2. What is the total cost of the first 14 capital goods produced? 3. Assuming the economy is producing combination B, what is the approximate per-unit cost of an additional capital good? Focus + 100% Page 1 of 5 479 words X English (United States)E: 0 ii 7- 9 a a ' a F Q 0 vamwme 4:45PM E Khalid Mahmud File Home Insert Drew Design Layout References Mailings Review View Help a Share 5' Comments i . . . I 4 E 0 8 1 6 24 32 2. What is the total cost of the rst 14 capital goods produced? 3. Assuming the economy is producing combination B, what is the approximate per-unit cost of an additional capital good? 4. Assuming the economy is producing combination C, what is the approximate per-unit cost of an additional capital good? Section B 1. State whether the following is a land, labour capital or enterprise a. An irrigation ditch in Manitoba b. he work done bylim Plum, a labourer who helped dig the irrigation ditch c. lake d. air at The efforts of the founder and primary innovator of a successful new software company. Page1of5 479words [51 English(Canada) Injrocus Ed 7|+ 100% v O O (. () ENG 4:45 PM E n AutoSave On Ly Assignment 1 (2).docx(rintu mam) - Last Modified: 8m ago 9 Search Khalid Mahmud X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Section C Look at the PPC and answer the following Production Possibilities for Coffee and Tea 280 240 lu V W 200 160 X Quantity of Coffee 120 80 40 Z 20 40 60 80 Quantity of Tea Focus + 100% Page 2 of 5 479 words X English (Canada)n W v O O (. () ENG 4:45 PM E AutoSave On Ly Assignment 1 (2).docx(rintu mam) - Last Modified: 9m ago 9 Search Khalid Mahmud X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments for Coffee and Tea 280 C 240 V W 200 160 Quantity of Coffee 120 80 40 Z 0 20 40 60 80 Quantity of Tea a. In moving from U to V tea is gained at the cost of coffee. b. In moving from W to x tea is gained at the cost of coffee. c. In moving from Y to Z tea is gained at the cost of coffee. Page 2 of 5 479 words X English (Canada) Focus + 100%E: 0 ii 7- 9 a a ' a 6 Q 0 vamwme 4:45PM E Khalid Mahmud File Home Insert Draw Design Layout References Mailings Review View Help a Share 5' Comments Section D ' The table below shows the demand and supply for fuji apples in Peterborough. Price Quantity Demanded Quantity Supplied 1 Quantity Supplied 2 0 200 120 l 2 190 130 l 4 180 140 l 6 1'70 150 l 8 160 160 l 10 150 170 ' a. What is the equilibrium price and quantity traded? The equilibrium price is $l and the quantity traded is l . b, Suppose supply increases by 20. Complete the last column in the table above. c. What would be the price and quantity traded at the new equilibrium? The equilibrium price is $l and the quantity traded is l . d, Aer the increase in supply, at a price of $8 there would be a ofl units. v Page3of5 479words I]; English (Canada) Injrocus II\" E i + E n v O O . () ENG 4:46 PM AutoSave On Ly Assignment 1 (2).docx(rintu mam) - Last Modified: 9m ago 9 Search Khalid Mahmud O X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Section E In each of the following markets, explain what effect the following changes will have on the equilibrium price and quantity traded. Market Change Orange A freeze in Florida occurs at the same time that the juice price of apple juice rises. Cigarettes The government introduces an effective anti-smoking policy and increases the tax on cigarettes. The legal age for drinking is raised at the same time that Beer technological change lowers the cost of brewing beer. Eye The cost of producing lenses falls at the same glasses time that wearing eyeglasses becomes quite fashionable. Section F Suppose that the price of a kilo of bananas drops from $5 to $3, and as a result, the quantity sold increases from 80 to 120 kilos. Page 4 of 5 479 words X English (Canada) Focus + 100%E: 0 ii 7- 9 a a ' a 6 Q 0 vamm)me 4:46PM E Khalid Mahmud File Home Insert Draw Design Layout References Mailings Review View Help a Share 5' Comments Section F Suppose that the price of a kilo of bananas drops from $5 to $3, and as a result, the quantity sold increases from 80 to 120 kilos, a) What is the value of total revenue before and aer the price change? $l and $l. b) What is the percentage change in the price? l II\" E i + E Page4of5 479words I]; English (Canada) Injrocus v O O . () ENG 4:46 PM n X AutoSave On Ly Assignment 1 (2).docx(rintu mam) - Last Modified: 9m ago 9 Search Khalid Mahmud O Share Comments File Home Insert Draw Design Layout References Mailings Review View Help c) What is the percentage change in the quantity? d) What is the value of the price elasticity of demand? Round your answer to 2 decimal places. e) Is the demand elastic or inelastic? Page 4 of 5 479 words X English (Canada) Focus + 100%