1. Draw a production possibilities curve showing the number of apples and pears that one person...

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1. Draw a production possibilities curve showing the number of apples and pears that one person can pick in a given time period. Show efficient, inefficient, and impossible levels of output. Explain why a combination of apples and pears (ie, a level of output at a middle point along the curve) gives you more fruit that if you had picked only apples. 2. The highest quality cricket bats, used by Test cricketers, sell for over $1,000AUD. They are made from a special type of willow tree grown specifically for that purpose. Similar bats, made from cheaper willow, sell for less than $200. Suppose a plant disease destroys half of the world's high quality willow trees. The stock of cheaper willow trees is unaffected. (a) Explain how the market for high quality cricket bats might be affected by this change. (b) Explain how the market for cricket bats made from cheaper willow might be affected by the change in the market for high quality bats. Hint: You'll have to draw at least one diagram for both questions, plus explain your answer 1. Draw a production possibilities curve showing the number of apples and pears that one person can pick in a given time period. Show efficient, inefficient, and impossible levels of output. Explain why a combination of apples and pears (ie, a level of output at a middle point along the curve) gives you more fruit that if you had picked only apples. 2. The highest quality cricket bats, used by Test cricketers, sell for over $1,000AUD. They are made from a special type of willow tree grown specifically for that purpose. Similar bats, made from cheaper willow, sell for less than $200. Suppose a plant disease destroys half of the world's high quality willow trees. The stock of cheaper willow trees is unaffected. (a) Explain how the market for high quality cricket bats might be affected by this change. (b) Explain how the market for cricket bats made from cheaper willow might be affected by the change in the market for high quality bats. Hint: You'll have to draw at least one diagram for both questions, plus explain your answer

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A Draw a production possibilities curve showing the number of apples and pears that one person can pick in a given time period Show efficient inefficient and impossible levels of output Explain why a ... View the full answer