The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces.
When a new method of rubber processing is discovered, the productivity of all Rubberland’s inputs increases. Please shift the PPF to show this change.
Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point.
How many more rubber hoses do they now produce per day than before?
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