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Answers
Answer:
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Technological innovation. A new computer is invented that will help William study more and debate more. Show what happens in the PPF graph from problem 1. Assume that the opportunity cost of studying and debating do not change. And assume the effects of the technological innovation affect debate and studying equally. Label the new PPF as PPF1.
Technological devastation. A computer virus devastates William's computer. William needs to use the local computer lab on the other side of campus to do his studies and debate research. This is a huge inconvenience for William, so he is unable to study and debate as much as before. Show what happens in the PPF graph from problem 1. Assume that the opportunity cost of studying and debating do not change. And assume the effects of the computer virus affect debate and studying equally.
Label the new PPF as PPF2.
What are the factors that will shift the PPF?
What are the factors that will shift a point along the PPF?
What are the factors that will shift a point along the PPF?