2. Draw an increasing opportunity cost Production Possibility Frontier and mark 1. The point that shows...

2. Draw an increasing opportunity cost Production Possibility Frontier and mark 1. The point that shows inefficient production 2. Efficient Production 3. Point of production that cannot be achieved.

3. In the following questions, draw the graph and answer in words. (5 points each) a) Draw a demand curve for pizza and show what happens when price of pizza falls. b) Assuming pizza to be a normal good, show what happens when income increases. c) If beer is a complementary good to pizza, show what happens to beer’s demand curve when price of pizza falls. d) If hot dog is a substitute to pizza, show what happens to hot dog’s demand curve when price of pizza falls.

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Rahul Sunny answered 1 year ago

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