The Quantity of Shoes Produced Is Measured Along the Horizontal

question 276

Multiple Choice

The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. As you move down toward the right along the PPF, the marginal cost of

• A) shoes and shirts is equal at the midpoint between the vertical and horizontal axis.
• B) shoes decreases.
• C) shirts increases.
• D) shoes increases.

---

Definitions:

Pumpkins

Fruits from the squash family, typically round with a smooth, slightly ribbed skin, and deep yellow to orange color, often associated with Halloween and autumn.

Cigarette Taxes

A tax levied on cigarettes to increase their price and decrease their consumption for health policy reasons.

Demand for Cigarettes

refers to the total quantity of cigarettes that consumers are willing and able to purchase at a given price level over a specific period of time.

Elastic

A characteristic of a good or service that indicates a high sensitivity of quantity demanded or supplied to changes in its price.