a Increasing the amount of resources devoted to the producti
| a | Increasing the amount of resources devoted to the production of military 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.
