Economics Homework Help

Question- 1Marks-3

Zaid can produce either tables or chairs. Zaid can work up to 10 hours a day. His production possibilities are given in the table below:

Tables	Chairs
0	100
10	80
20	60
30	40
40	20
50	0

• Construct the production possibilities frontier (PPF) for Zaid. Put tables on the Horizontal axis and chairs on the vertical axis.
• What is Zaid’s opportunity cost of producing one additional table?
• Currently Zaid is producing 20 tables and 40 chairs.

• Is this allocation of resources efficient? Why?
• Show this allocation on the graph and advise Zaid how he can be more efficient.

Question- 2Marks-2

Suppose the market for Computer is given by the following equations for supply and demand:

Qd= 3300−2P
Qs= 500+8P

• Calculate the equilibrium price and quantity.
• Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.