AP 1.4 CB Analysis and Consumer Choice

Because resources are perfectly adaptable to the production of both goods.

Because increasing production of one good allows for specialization and efficiency gains that offset the loss of the other good meaning decreasing opportunity costs.

Because the two goods are always substitutes, not complements.

Because opportunity cost remains constant as production shifts between goods.

2 acres

3 acres

4 acres

5 acres

$40

$50

$75

$90

A) Buying more candy bars and bags of chips

B) Buying more candy bars and fewer bags of chips

C) Buying fewer candy bars and more bags of chips

E) Buying the same number of candy bars and bags of chips

D) Buying fewer candy bars and bags of chips