1. Problems and Applications Q1 For each of the following pairs of goods, which good would you expect to have more elastic demand? Pairs of Goods More Elastic Demand Mansions or rental homes Chicago Symphony recordings or orchestral music recordings in general Subway rides during the next 6 months or subway rides during the next 5 years Strawberries or fruit in general

Suppose either computers or televisions can be assembled with the following labor inputs: units produced 1 2 3 4 5 6 7 8 9 10 total labor used 3 7 12 18 25 33 42 54 70 90 (a) draw the production possibilities curve for an economy with 54 units of labor. label it p54. (b) what is the opportunity cost of the eighth computer? (c) suppose immigration brings in 36 more workers. redraw the production possibilities curve to reflect this added labor. label the new curve p90.