a Increasing the amount of resources devoted to the producti

a Increasing the amount of resources devoted to the production of military goods
Military goods Civilian goods

Solution

Answer for question 1

Point A is easily attainable even if available resources aren\'t fully utilised. In this case movement from Point A to Point D ia due to effectively utilised available resources.( Different technology shifts the PPF hence cannot be correct option here)

Hence option B is correct answer

Answer for part B)

If price of substitute changes for Substitutes , Demand curve for substitute moves along the demand curve and demand curve for good shifts in or out.

In this case price of a substitute of coffee increases it will shift demand curve outwards

Hence option C is correct answer here.

 a Increasing the amount of resources devoted to the production of military goods Military goods Civilian goods SolutionAnswer for question 1 Point A is easily

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