1. Set up assuption and draw the production possibilitues Curve (PPC) from consu

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 wherea. 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 constantb. Demand decreases and supply is also decreased.c. Demand increases and supply is decreasedWhat are the impacts of the prices and quantities ? Requirements: answer effectively   |   .doc file