Question

Consider the praduction possibiities frontier (PPE) that shows the trade off between the productian of cotton and the production of saybeans depicted in the figure to the right Q. Usa the 。ถ-pcrnt cured lino drawngto๘ ta show teaffect that improved fertilzers \aid have on the initial production possibilities frontier by drawing a new production poesitilities roner. Properly lbel this curve. Carahuly toow tha astructions above, and only draw ma aqained objocts

Answer 1

Imported fertilizer will increase the production of soybean and cotton in the economy and that will shift the PPf to the right i.e. at a higher production level.

the changes in the graph is shown here.

Imported fertilizer will sift the PPF to the right and increase the production of the cotton and soybean. Old PPF New PPF S1 Soybean