The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2

-Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis. The discovery of a new fertilizer that improves crop yield will shift:

Question

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2
 
-Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis. The discovery of a new fertilizer that improves crop yield will shift:

Quizplus · Accepted Answer

The discovery of a new fertilizer that improves crop yield directly affects the production of cotton, increasing its production potential without affecting the production of automobiles. This results in the horizontal intercept, which represents the maximum possible production of cotton, shifting to the right, while the vertical intercept, representing the maximum possible production of automobiles, remains unchanged.

The Figure Given Below Represents an Economy Producing Corn and Planes