Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The absolute value of the slope of the production possibilities curve between points A and B equals:
A)6.
B)4.
C)3.
D)1/3.

Question

Quizplus · Accepted Answer

Moving from point A to point B, 9 coffees are given up in exchange for 3 additional cappuccinos. Slope is rise/run. In this case, the rise is -9 and the run is +3, so the absolute value of the slope is 3 (=|-9/3|).

Assume Point a on a Linear Production Possibilities Curve Represents