Figure 9.6
-Refer to Figure 9.6. In the short run, an improvement in the technology will move the equilibrium to:
A) point H.
B) point D.
C) point E.
D) point F.

Question

Figure 9.6
-Refer to Figure 9.6. In the short run, an improvement in the technology will move the equilibrium to:
A) point H. 
B) point D. 
C) point E. 
D) point F.

Quizplus · Accepted Answer

An improvement in technology will shift the production possibilities curve outward, allowing for more production of both goods. This will move the equilibrium to a point where both goods are produced in greater quantities, which is point A.

Figure 9.6 -Refer to Figure 9.6. in the Short Run, an Improvement