a. How does the production possibility curve illustrate the microeconomic issues of choice and opportunity cost?

Question

b. What is the difference between a movement and a shift in the demand curve for full fat milk?

c. Explain and demonstrate graphically:

i. the effect of an increase in the price of denim fabric on the equilibrium price and quantity of denim jeans; and

ii. the effect of a change in consumer preferences in favour of health and wellness on the equilibrium price and quantity of gym membership fees.

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