This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The production possibilities boundary shows possible combinations of guns and butter that can be ... (Read 48 times)

Adc3669

  • Full Member
  • ***
  • Posts: 148
on: Oct 12, 2022

The production possibilities boundary shows possible combinations of guns and butter that can be produced by a country. The lower diagram shows demand and supply for butter.



FIGURE 12-2

Refer to Figure 12-2. Suppose this economy is allocatively efficient at Q1 units of butter. Now suppose there is an increase in demand for butter from D to D1. After this shift in demand,


◦ the increase in the price of butter (relative to the price of guns) will cause the demand curve to shift back down to D and allocative efficiency will be maintained.
◦ the price of guns (relative to the price of butter) rises and the economy moves to point (a) on the PPB.
◦ the supply curve will shift up to S1 and allocative efficiency will be maintained.
◦ the marginal value to consumers of butter is less than the marginal cost to producers; the price of butter (relative to the price of guns) rises; the economy moves to output Q2 of butter and point (c) on the PPB.
◦ the marginal value to consumers of butter is greater than the marginal cost to producers; the price of butter (relative to the price of guns) rises; the economy moves to output Q2 of butter and point (c) on the PPB.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Adc3669 on Oct 12, 2022

Kevin5!

  • Full Member
  • ***
  • Posts: 188
Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


Adc3669

  • Member
  • Posts: 148
Reply 2 on: Oct 12, 2022
Great answer, keep it coming :)

mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
Trans-fat in Peanut Butter Trans-fat in Peanut Butter
Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ... Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ...
Drawing shows what is occurring electrically at each part of the scope pattern. Drawing shows what is occurring electrically at each part of the scope pattern.
This image shows a normal third-trimester fetal brain This image shows a normal third-trimester fetal brain
Punnett square of the dihybrid cross shown in Figure 3.8. There are two combinations of dominant and Punnett square of the dihybrid cross shown in Figure 3.8. There are two combinations of dominant and
Video: Body plan of euglena Animation

For a complete list of videos, visit our video library