1. Bety can make either 20 bottles of wine and 0 boxes of chocolates or 0 bottles of wine and 160 boxes of chocolates or a combination of wine and chocolates. For parts (a)though (c)of this question assume Betty’s production possibility frontier (PPF)reflects the property of constant opportunity costs
a) Draw Betty’s PPF
b) Find Betty’s oportunity cost of a bottle of wine in terms of box(es) of chocolates
c)Suppose Betty takes a course callled WINE 103. After the semester is over she realises she can now make either 40 bottles of wine and 0 boxes of chocolates or 0 bottles of wine and 160 boxes of chocolates or a combination of wine and chocolates. Find Betty’s new opportunity cost of a box of chocolate in terms of bottle(s) of wine
2) Find equilibrium price ,quantity and revenue in the market characterised by the folllowing information
Qd=500-3p (demand curve)
Qs=2p (supply curve)