Figure 2.1. Production Possibilities Frontier

question 106

Multiple Choice

Figure 2.1. Production Possibilities Frontier
-Refer to Figure 2.1.If the relative cost of aluminum were to rise, then the production possibilities frontier would

• A) become steeper.
• B) become flatter.
• C) shift inward in a parallel manner.
• D) shift outward in a parallel manner.

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Definitions:

Demand Elastic

Refers to how sensitive the quantity demanded of a good is to a change in its price.

Demand Schedule

A chart displaying the amount of a product or service buyers are prepared and capable of buying at different price levels.

Total Revenue

The total amount of money generated by the sale of goods or services related to the company's primary operations.

Total Revenue

The complete sum of funds a business acquires from sales or services rendered over a specific timeframe.