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Komok [63]
3 years ago
14

A construction company plans to build a certain number of apartment buildings and stores on a piece of land. This PPC shows the

combination of projects it can build
1) If the amount of land available to the company increases, the PPC will _____.
a) Shift to the left
b) Shift to the right
c) remain unchained
2) The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in. In this case, the PPC will _____.
a) Shift to the left
b) Shift to the right
c) remain unchained
SAT
2 answers:
ICE Princess25 [194]3 years ago
4 0
1)B. Because they have more land now
2)A. Because they have less land now
Shifts right means more supply or demand while left means less
Fittoniya [83]3 years ago
3 0

Answer:

1) B

2) A

Explanation:

Production possibility curves (PPC) shows the combination of two commodities that can be made given a certain amount of resources.  

1)  In statement 1, since the land available has increased the company can make <u>more of </u><u>BOTH</u><u> apartments and stores</u>. In this case the amount of resource (land) has increased causing the PPC to shift to the right.

2)  Contrary to statement 1, a portion of land is now unusable. Hence it can’t be used to make either apartments or stores on it, at all. The reduction in resource (land) has <u>reduced the amount of </u><u>BOTH</u><u> apartments and stores</u> that can be made, causing the PPC to shift to the left.

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