a1even - CARLETON UNIVERSITY Department of Economics ECON...

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CARLETON UNIVERSITY Department of Economics ECON 1000A TUTORIAL ASSIGNMENT 1 2,4,6,8,10 Instructor: D. Smith________________________________________________FAll 2007 1. A farmer has 3 acres of land. Different acres have different comparative advantage in producing Corn and Wheat, the only 2 crops that can be grown on these fields. The possible uses of these fields are shown below. Maximum output of each crop per acre Acre 1 Acre 2 Acre 3 Corn 200 200 100 Wheat 400 200 50 a. Plot the production possibilities curve for Corn and Wheat. Be sure to label axes carefully. (b) Describe the opportunity costs involved in switching production from Corn to Wheat. Your opportunity cost ) answer should refer to points in the PPC diagram 2. The demand curve for pizza is: P=100-0.04Q (P is in cents per slice). NOTE: In this equation 100 means 100 cents and 0.04 means 0.04 cents. (a) Draw the demand curve for pizza. (b) If P= 20 cents, compute quantity demanded and elasticity of demand at this price.
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This note was uploaded on 10/11/2011 for the course ECON ECON 1000 taught by Professor Michaelfrancis during the Fall '11 term at Carleton.

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a1even - CARLETON UNIVERSITY Department of Economics ECON...

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