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Unformatted text preview: producing cars by growing wheat. His point in this brief chapter is that international trade is just ___________ (complete this sentence below.) a form of technology 1 6-8. Draw a shopkeeper’s production possibilities frontier for pizza and stromboli. Suppose that production of these goods is subject to constant marginal opportunity costs in production, and be sure that your graph reflects this fact. Now suppose that the shopkeeper installs a newer, larger, more efficient oven. Show, on the same graph, how this change affects the ppf. 9-10. Draw and label a Supply and Demand graph for the market for pizza in State College. Now suppose that the price of mozzarella, sauce, and flour all increase. Show how this affects your original graph. Make sure it is clear which parts change and in what direction. 2...
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This note was uploaded on 03/30/2008 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Spring '08 term at Penn State.
- Spring '08
- Interest Rates