Production Possibility Curve and Opportunity Costs Steps:

• Identify the PPC shape: typically concave, indicating increasing opportunity costs for both goods.
• Analyze movement for more Y (vertical axis): sacrificing X increases as resources specialize.
• Analyze movement for more X (horizontal axis): sacrificing Y increases due to less efficient resources.
• Compare to options: standard curve shows increasing costs for both, but diagram unspecified.

Not enough information: Diagram not provided to confirm specific costs for goods X and Y.

Why D is correct: Cannot verify without diagram; assumes non-standard convex PPC where Y cost rises but X falls, defying law of increasing costs.

Why the others are wrong:

• A: Both decreasing contradicts concave PPC.
• B: Y decreasing unlikely in standard model.
• C: Both increasing fits standard, but diagram may differ.

Final answer: D