The Following Table Shows the Production Possibilities for the Country

question 39

Multiple Choice

The following table shows the production possibilities for the country of Erewhon:

-Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 1 more unit of cheese?

• A)3/4 of a unit of wine
• B)1 1/3 units of wine
• C)6 units of wine
• D)8 units of wine

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Definitions:

Price Elasticity

A measure of how much the demand for a product changes in response to a change in its price.

Hamburger

A popular food item consisting of a cooked patty of ground meat, usually beef, placed inside a sliced bun.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, showing the sensitivity of consumers to price changes.

Point C

In the context of economic graphs and models, a specific point that can represent a variety of economic outcomes or equilibria depending on the diagram.