Explain the connections between opportunity cost

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Reference no: EM138671

Q1. Manipulate demand of price elasticity. Suppose that 50 units of a good demanded at a cost of 1 / unit. A reduction in price to $.20 results in an increase in quantity demanded to 70 units. Show that these data yield a price elasticity of $0.25. Explain by what percentage (%) would a 10% rise in the price decrease the quantity demanded also assuming price elasticity remains constant along the demand curve?

Q2. Explain the connections between opportunity cost and the production possibilities frontier?

Reference no: EM138671

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