The Figure Given Below Represents an Economy Producing Corn and Planes

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:

A) the vertical intercept up but will not shift the horizontal intercept.
B) the horizontal intercept to the right but will not shift the vertical intercept.
C) the horizontal intercept to the left and the vertical intercept upward.
D) the vertical intercept downward and the horizontal intercept to the right.
E) neither the horizontal intercept nor the vertical intercept.

Correct Answer:

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