The following figure and the paragraph after it concem questions 27 to 33. Figure 1 Clothing...

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The following figure and the paragraph after it concem questions 27 to 33. Figure 1 Clothing (units) F1 F* F2 Food (units) Source: Figure 16.11 on page 617 of course textbook, Pindyck and Rubinfeld, Microeconomies (8* edition). Module 12: P; Consider Figure 1. Assume that the price rector is. Point A is the optimal (27) point and point B is the optimal Clothing and an increase. All markets will be at equilibrium at point C. Also at point C, production and consumption decisions are consistent. Technically; point A is efficient and point C is 28) point. Given the price vector, there is an (30) Food. The price of Clothing will decrease and the price of Food will (29) (31) efficient, point B is (32) (33) efficient 27. a) production b) consumption 28. a) production b) consumption 29. a) excess supply of b) excess demand for 30. a) excess supply of b) excess demand for 31. a) production b) consumption output 32. a) production b) consumption output 33. a) production b) consumption c) output The following figure and the paragraph after it concem questions 27 to 33. Figure 1 Clothing (units) F1 F* F2 Food (units) Source: Figure 16.11 on page 617 of course textbook, Pindyck and Rubinfeld, Microeconomies (8* edition). Module 12: P; Consider Figure 1. Assume that the price rector is. Point A is the optimal (27) point and point B is the optimal Clothing and an increase. All markets will be at equilibrium at point C. Also at point C, production and consumption decisions are consistent. Technically; point A is efficient and point C is 28) point. Given the price vector, there is an (30) Food. The price of Clothing will decrease and the price of Food will (29) (31) efficient, point B is (32) (33) efficient 27. a) production b) consumption 28. a) production b) consumption 29. a) excess supply of b) excess demand for 30. a) excess supply of b) excess demand for 31. a) production b) consumption output 32. a) production b) consumption output 33. a) production b) consumption c) output

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27 A Optimal production because it is on PPC and resources are well utilized Points along ... View the full answer