Answer to Question #292267 in Microeconomics for Izabela

Question

Generate a PPF graph for a society that has production sectors of potatoes and diamonds and show the following changes to your original PPF. Show the effect of the introduction of a new improved fertilizer on your societies PPF.

Answer 1

The introduction of a new improved fertilizer will increase potatoes production, so the PPF will shift rightwards (the maximum point on the potatoes axis will increase).