The PPF is: $300 = $2*S + $2*T when 0 50, and the PPF is $500 = $5*S+ $2.50*T when 50 iless than(<) **S **less than or equal to 100 .

1) Graph this PPF (S on horizontal axis, T on the vertical axis).

2) What is the relative price of S in terms of T when S = 25? When S = 75?

3) Is the relative price of S increasing as more S is produced?

Suppose there is only one input, Labor. Our economy has 100 units of L**. **We can produce S and T in the following way: S= 4* L and T = 1*L

4) graph the PPF for this?