QUESTION NO 1The weekly demand and supply schedules for t-shirts (in millions) in a free market are as follows:Price ($) 8 7 6 5 4 3 2 1Quantity demanded 6 8 10 12 14 16 18 20Quantity supplied 18 16 14 12 10 8 6 4 (a) What is the equilibrium price and quantity? (b) Assume that changes in fashion cause the demand for t-shirts to rise by 4 million at each price. What will be the new equilibrium price and quantity? (c) Now plot the data in the table on a graph and mark the equilibrium. Also plot the new data corresponding to (b) and mark the new equilibrium. QUESTION NO 2(a) Assume that the operators of the fishing boat, "The Bearly Afloat" have a choice between using their boat for commercial fishing or for providing fishing excursions for small groups of tourists. Using the data below, construct a diagram of the Production Possibilities Curve for the operators from the data in the following table: Table: Production Possibilities for the "Bearly Afloat"Fish Catch Fishing Excursions(Kilos p a.) (trips p.a)16000 and 014000 " 3012000 " 4810000 " 638000 " 756000 " 844000 " 902000 " 930 " 96(B) When economists refer to "opportunity cost", what do they mean by this? (C) If the operators choose to raise fish production from 10000 to 12000 kilos, what is the opportunity cost of doing this? (D) Explain why the opportunity cost changes at every level of production? (E) Assume that the operators of the "Bearly Afloat" can earn an average $12 per kilo for any fish caught or earn an average $1000 from each tourist fishing excursion trip.Consider the following two production choices:(a) Catch 12000 kilos of fish and provide 48 excursion trips(b) Catch 8000 kilos of fish and provide 75 excursion tripsWhat is the ($) dollar value of choice (a)What is the ($) dollar value of choice (b) Which choice (a) or (b) will maximise earnings for the operator: (f) Explain the difference between Allocative efficiency and Productive efficiency.