AB224-01 Unit_3_Assignment_Template12.docx

AB224-01 Unit_3_Assignment_Template12.docx - Unit 3...

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Unit 3 Assignment: Supply and Demand Name: Shalonda Johnson Course Number and Section: AB224 01 Date: 03-22-18 General Instructions for all Assignments 1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format: Course number_section number_Last_First_unit number 2. At the top of the template, insert the appropriate information: Your Name, Course Number and Section, and the Date 3. Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow APA format with citations to your sources and, at the bottom of your last page, a list of references . Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double spaced, in Times New Roman, 12 point, and black font). Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. 4. Upload the completed Assignment to the appropriate Dropbox. 5. Any questions about the Assignment, or format questions, should be directed to your course instructor. Assignment In this Assignment, you will demonstrate your understanding of the Production Possibility model, marginal opportunity costs, and the differences in marginal opportunity costs. Additionally, you will demonstrate a clear understanding of the crucial concept of supply and demand, and the impact on the original group caused by a change in demand. In this Assignment, you will be assessed on the following outcome: AB224-1: Examine how various supply and demand scenarios affect the way prices and quantities are set by market interactions in perfectly competitive markets. Questions 1. In ancient days a tribe of natives on the mythical continent of Atlantis was able to produce two commodities to eat. They could harvest fish from the sea and they could grow a form of wild oats. Table 1.a. and Graph 1.a. both show the maximum annual output combinations of fish and wild oats that could be produced by the natives of Atlantis.
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Table 1.a. Maximu m annual output options Kilograms of fish Bushels of wild oats 1 7,000 0 2 6,000 300 3 5,000 500 4 4,000 625 5 3,000 710 6 2,000 775 7 1,000 825 8 0 850 Could the Atlantis tribe have produced 800 bushels of wild oats and 5,000 kilograms of fish at the same time? Explain your answer. Where would this point lie relative to the production possibility frontier? Atlantis tribe has produced 800 bushels and 5000 kilograms of fish at the same time which make the company produce at a point beyond their production possibility curve. It thus shows that they will adjust to allocate more resources to produce optimal quantities of fish and Oats or forego some units of fish, so as to produce more of Oats. Therefore, the points outside the PPF are unattainable given the current state of resources and technology. It is thus impossible for Atlantis Company to produce outside the PPF. It will thus force them to increase technologies and resources so as to change the shape of the PPF. For instance,
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