AP Microeconomics 1.6 Supply and Demand

in terms of boats is constant for any level of

production What will the production possibilities curve for this economy

Look like all right potential answers right Both in your

boat Boat boat Well we're drawn grafts now underway to

think through this problem So get your crayons people We

start with this thing mr x and mr y and

this vertical line covers boats and this horizontal line covered

cotton need to figure out if the answer is a

curve shaped like this This this or well this So

if we think through the logic of any of these

curves the answer should come to us in well pretty

straightforward fashion A curve either up or down sideways or

backwards is going to give uneven distribution of resource is

think about an extreme curve like this if we reduce

cotton production just a tiny bid like from here to

here then glam o production volumes of road explode The

same happens with any of the other kurt Small moves

of resource is on one side of the equation Have

dramatic changes on production availability of the other constraint Good

but the problem kind of gives us the answer It

says the opportunity cost of oats is constant for any

level of production constant meaning that what should happen is

if we moved back a scotia this way reducing cotton

production As we move our dot thing in toward the

origin then the ability to produce more oats should increase

similarly or constantly Well small moves this way imply small

moves that way So the answer is b linear and 00:01:54.032 --> [endTime] that's How we roll our oats