elearning.kbs.edu.au Topic: Assessments | ECOM4000 Econo... Assessment 01 - Test - Online (page 6 of... ChatGPT < > Paraphrasing Tool - QuillBot Al Search Results | Course Hero Time left 1:22:58 Consider the following production possibilities frontier (PPF) showing the trade-off in production between capital goods and consumer goods. Capital Goods a 500 b 400- 300 200 L 100- d e 150 250 350 450 550 Consumer Goods (a) How many capital goods and consumer goods does this economy produce at Point b on its PPF? How many does it produce at Point d? (2 marks) (b) What is the opportunity cost of consumer goods in terms of capital goods if the economy moves production from Point b to Point d? (3 marks) (c) Would you expect higher economic growth in the future for this economy at Point b or Point d? Explain your answer. (3 marks) (Approximate numbers read off the chart are ok.) A B I III -NM ||| KO * < > Topic: Assessments | ECOM4000 Econo... Assessment 01 - Test - Online (page 7 of... Question 7 Not yet answered Marked out of 8.00 Flag question Consider the following market showing the demand (D) and supply (S) of iPads. (a) State the market equilibrium. (2 marks) P ($) 900- 800- 700- 600- 500- 10 20 20 30 40 40 S D elearning.kbs.edu.au Q (000) 50 ChatGPT Paraphrasing Tool - QuillBot Al Search Results | Course Hero Time left 1:22:38 (b) Consider the situation where iPads sell for $600. How many iPads would be demanded and supplied in this market? Is the market in a shortage or a surplus at this price? Calculate the size of this shortage or surplus. (3 marks) (c) Explain what would happen in this market if there was a large increase in the price of laptop computers at the same time that there was a large increase in the price of resources required to make iPads. (You do not need to draw a diagram, but you must state what happens to the curve(s) and the market price and quantity.) (3 marks) (Approximate numbers read off the chart are ok.)