Question

Millsville can use its limited resources to produce only applesauce and apple juice. Below, you are provided with feasible combinations of applesauce and apple juice that Millsville can produce and that employ all of Millsville’s productive resources.

Applesauce (jars)	Apple Juice (bottles)
5	0
4	2
3	4
2	6
1	8
0	10

Task 1: In the graph below, construct Millsville’s PPF in blue. Be sure to place jars of applesauce on the horizontal axis and bottles of apple juice on the vertical axis.
Task 2: Suppose that Millsville’s ability to produce applesauce is enhanced. More specifically, it is now able to produce two more jars of apple sauce for each bottle of apple juice it produces. In the graph above, construct Millsville’s NEW PPF in red.
Task 3: Before growth in its productive capacity with respect to apple sauce, Millsville could produce 2 bottles of apple juice when it produced 4 jars of apple sauce. Now, it can produce 6 bottles of apple juice when it produces 4 jars of apple sauce. Can you explain how Millsville appears to be more productive in producing apple juice when only its productivity with respect to apple sauce changed?

Answer 1

Apple sauce

Apple juice

New Apple sauce

Task 3

Technology in producing apple juice may have improved.