NAMEECON 104.sPARTICIPATION ASSIGNMENT 1EMAIL:Spring 2015Date Due: Thurs., lan.29This assignment is due in class on Thursday, January 29. No lote assignments will be accepted. lfyou cannot make it to class on Lf29, send your homework with a friend or turn it in early duringoffice hours. (Note: We will not accept assignments that are sent via email.)?ff0IEO1fiil1+CIIX0I0rlSrl60403[applestfl +[ fi0 $r] I0il It0 1+0 Id[ 18r]Considerthe production possibilities curve for lreland which produces sweaters, apples (in bushels),or a combination of the two.1. (2 points) If Ireland devotes all of its available resources to producing apples, then it will produce (howmany):apples and sweaters.2. (2 points) Which point(s) on the above graphAnswer:show unemplolmrent of resources?Answer: apples / sweaters (circle one)2.14. (2 points) Which poin(s) show production possibilities that are only achievable with improvements intechnology or increases in resources?1.3. (2 points) Suppose keland is currently at point R. What is the opportunity cost of moving from point R topoint Q?4.sWeotersIIIITIIIIII---___r_IIAnswer:ECON 104Spring 2015Label the axes.5. (2 points) In the space below draw the demand cuve for used tires.Greenpoint Auto Salvage sells used tires, an inferior good. Using you graph above,illustrate how a sharp improvement in the U.S. economy (falling unemployment, risingoutput and incomes) would affect the demand for used tires.True or False: A sharp improvement in the U.S. economy will result in a decrease in thequantity demanded of used tires. (Circle True or False.)(2 points) In the space below draw the supply curve of smartphones. Label the axes.45High and rising profits in the smartphone industry will attract new firms to the industry.Using your graph above, illustrate how this will affect the supply of smartphones.True or False: Increasing profits in the smartphone industry will ultimately result in adecrease in the supply of smartphones. (Circle True or