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answer this questions.
1. If a product is over prices relative to its supply, explain how the forces of the market exert pressure to bring the price into line. Why is this pressure even greater with perishables? Show graphically.
2. Read Policy Watch: What are the Opportunity costs and Benefits of a College Degree for full time working adults? How do they differ from those costs/benefits for students attending college full time straight out of high school?
Answer these questions with 2-3 paragraphs each (1 page) per question.
1: Why does the PPF for most goods bow outward so that the opportunity cost increases as the quantity produced of a good increases?
2: What is the opportunity cost of economic growth?
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