Unit 3 Assignment: Supply and Demand

Unit 3 Assignment: Supply and Demand

Name:

Course Number and Section:

Date:

General Instructions for all assignments:

1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:

Course number_section number_last name_first name_unit number

2. At the top of the template, insert the appropriate information:

Your name, course number and section, and the date

3. Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow current APA format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double-spaced, in Times New Roman, in 12-point, and black font). Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.
4. Upload the completed assignment to the appropriate Dropbox.
5. Any questions about the assignment, or format questions, should be directed to your course instructor.

NOTE:

Before attempting to complete the Unit 3 Assignment, it is strongly recommended that you complete the TWO Learning Activities associated with this assignment. The links to the learning activities are found within the course by selecting “Content”, then on “Unit 3”, then on “Assignment”, and then on “Unit 3 Assignment.” The links appear within the paragraph entitled “Learning Activity.”

Assignment:

In this assignment, you will demonstrate your understanding of the Production Possibility Frontier model, marginal opportunity costs, and the differences in marginal opportunity costs. You will also demonstrate your understanding of the differences between Absolute Advantage and Comparative Advantage in different situations. Additionally, you will demonstrate a clear understanding of the crucial concept of supply and demand, and the impact on the original group caused by a change in demand.

In this assignment, you will be assessed based on the following Outcome:

BU224-1: Examine how various supply and demand scenarios affect the way prices and quantities are set by market interactions in perfectly competitive markets.

Questions

1. In ancient days a tribe of natives on the mythical continent of Atlantis were able to produce two commodities to eat. They could harvest fish from the sea and they could grow a form of wild oats. Table 1.a. and Graph 1.a. both show the maximum annual output combinations of fish and wild oats that could be produced by the natives of Atlantis.