Question

n Wednesday, Laila made 4 brioche buns and 16 muffins. On Thursday, Laila made 5 brioche buns and 16 muffins. Assuming Laila faces costs that are constant- which of the following are true about the changes that occurred between Wednesday and Thursday?

I. Laila has moved along her production possibilities frontier (PPF)

II. Laila has more resources to produce both goods

III. Laila's PPF has rotated outwards

Question 9 options:

	II and III only
	III only
	II Only
	I and II only

Question 10 (2 points)

Provide a brief explanation for the answer chosen above:

Answer 1

Answer 9: III only will be the answer

Answer 10: explanation of the above chosen answer.

Lila have made 4 brioche buns and 16 muffins on wednesday. Lila have increased the quantity of brioche bun which she have made 5 buns on thrusday but muffins quantity will be same as 16. That's mean lila has more resources to made brioche buns than muffins. So production possibility curve will be rotate.

I AND II would not be the correct answer as quantity of producing one good increased so definitely she don't have more resources for both goods.

I m attaching a photo through which you will get more clearity