1.1 Discuss how the production possibility frontier model can be used to illustrate the basic economic...

 

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1.1 Discuss how the production possibility frontier model can be used to illustrate the basic economic problem of scarcity. (20) 1.2 Explain the consumer equilibrium condition according to utility theory. Include in your answer the provision of its formula. (10) QUESTION TWO 2.1 List and explain four (4) factors that would result in the shift of the supply curve from $1 to $2 in the diagram below. (20) 2.2 P1 [30] 51 Discuss the two main types of related goods according to demand and supply analysis. (10) 1.1 Discuss how the production possibility frontier model can be used to illustrate the basic economic problem of scarcity. (20) 1.2 Explain the consumer equilibrium condition according to utility theory. Include in your answer the provision of its formula. (10) QUESTION TWO 2.1 List and explain four (4) factors that would result in the shift of the supply curve from $1 to $2 in the diagram below. (20) 2.2 P1 [30] 51 Discuss the two main types of related goods according to demand and supply analysis. (10)

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