Answering Questions on Economics
1. Set up assuption and draw the production possibilitues Curve (PPC) from consumer goods (horizontal axis) and Capital Goods (Vertical axis) on points , a, b, c, d,e,f,g. Let point h is under production and I is unattainable.
2. Draw demand and supply curves where
a. Demand = Supply. What is this situation?
b. Demand > supply. What is this situation?
c. Demand < Supply. What is this situation?
3. Draw demand and supply equilibrium where:
a. Demand increases and supplyis constant
b. Demand decreases and supply is also decreased.
c. Demand increases and supply is decreased
What are the impacts of the prices and quantities ?