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Question : When there is a growth of resources, a concave "production possibility curve" will:

Option 1: shift leftward

Option 2: shift rightward

Option 3: become straight

Option 4: become convex


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: shift rightward


Solution : The correct answer is shift rightward.

A shift in the demand curve occurs when there is a change in the underlying factors influencing demand. An increase in demand is reflected by a shift to the right, indicating higher quantities demanded at each price level. Several factors can contribute to this shift, such as increased consumer preferences, higher incomes, or reduced prices of complementary goods. Conversely, a leftward shift implies decreased demand, often due to factors like reduced consumer income or increased prices of substitutes.

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