Use the Figure Below to Answer the Following Questions

Multiple Choice

Use the figure below to answer the following questions. Figure 2.1.6
-Figure 2.1.6 shows the production possibilities frontier for a firm that produces pet food.This PPF ________ illustrate scarcity because ________.

A) does;the firm cannot produce points outside the frontier,and as the firm moves along the PPF,it cannot produce more dog biscuits without producing less cat food
B) does not;the firm can produce any quantity it wants if it is willing to charge a high enough price
C) does not;the PPF is downward sloping
D) does;as more is produced,consumers must pay a higher price
E) does not;scarcity does not occur in the market for pet food