answer questions
On the producer side, why are prices advantageous over a system where each producer would make some amount of goods along their PPF? (Hint: The word incentives should be included in this answer. Explain what information the producers would have to glean from others before making their production decision in a priceless system of trade.)
Show the derivation of a supply curve from the underlying fundamentals of producers solving their problem. In other words, show a societal PPF, given price line, and amount of good 1 produced. Then change the price of good 1 (either decrease or increase it) and show the new amount of good 1 produced. Change the price one more time (in the same direction) and show the new amount of good 1 produced. Plot your three (Q1, P1) points on a separate graph to reveal your supply curve.
