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The questions asked that suppose that, because of important technological improvements, the society in question can double its production of tractors at each level of food production. If so, is this society on its new production possibilities curve if it produces 20 million tons of food and 16 million tractors? Plot the new production possibilites curve. At which point along the horizontal axis doe the new curve cut the axis? At which point along the vertical axis does it cut the axis?
Output (per year)
Possibility Food (millions of tons) Tractors (millions)
A 0 30
B 4 28
C 8 24
D 12 20
E 16 14
F 20 8
G 24 0
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