Question

The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubb productivity of all Rubberland's inputs increases. Please shift the PPF to show this change Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before? Rubberland's Production Possibilities 200 180 160 140 120 100 er processing is discovered, the 80 60 8 40 20 PPF 0 10 20 30 40 50 60 70 80 90 100 Quantity of rubber hoses more hoses per day about usrrspacy policy terms of use contact us help

Answer 1

When a new method of rubber processing is discovered, the productivity of all Rubberland's input increases. Production of both good will increase hence there will be a shift in the PPF from PPF to PPF'.

all Quantity of Rubber band O co 20 30 40 SP 6o 70 go go 700 Guantity o Kibbes hoses

At new production point B, Rubberland does not make more rubber band balls. Only more of rubber hoses are being made

How many more rubber hoses do they now produce per day than before.

20 more hoses per day.

How many more rubber hoses are produced completely depends on the magnitude of shit.. It could be 30 if the shift would have done accordingly.

all Quantity of Rubber band O co 20 30 40 SP 6o 70 go go 700 Guantity o Kibbes hoses