4X2 + Y2 = 16
(a) Please the intercepts of this equation. In other words, what is the value of X if Y =0?
What is the value of Y if X =0?
(b) Please sketch this equation and make sure that you label the vertical and horizontal axes and the original point.
(c) Given X =1, Y = 4, what is the location of this point on the PPF graph? (In other words, is this point outside the PPF? On the PPF? Inside the PPF? Or the wrong quadrant to be on the graph?)
(d) Given X = 3 and Y=2, what is the location of this point on the PPF graph?
(e) What is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units ofY)?
(f) What is the opportunity cost of going from 2 units of X to 3 units of X (in terms of units ofY)?
(g) Is the opportunity cost of X in terms of Y constant in this economy, or does it depend on the levels of output being produced? Please explain.