Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the equilibrium quantity?

You have just been elected President of the United States, based on your campaign promise to buy everyone a new sport utility vehicle. What are your funding options for this spending program, and what are the implications of each option?

Figure 2-2

Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. represents the production possibility frontier for beef and wheat. Between points F and G, the opportunity cost increasing wheat by two bushels equals
a.
0.25 million pounds of beef
b.
1.75 million pounds of beef
c.
0.125 pounds of beef
d.
8.0 pounds of beef
e.
0.5 pounds of beef