Refer to the information provided in Figure 2.6 below to answer the question(s) that follow. Figure 2.6 -Refer to Figure 2.6. If the economy is at ppf^{1, a change in consumer preferences would be shown by a} A) shift from ppf² to ppf¹. B) movement along ppf¹. C) movement along ppf². D) shift from ppf¹to ppf².

Question

Quizplus · Accepted Answer

A change in consumer preferences would not shift the production possibility frontier (PPF) but would instead cause a movement along the existing PPF as the economy reallocates resources to produce different combinations of goods according to the new preferences.

Refer to the Information Provided in Figure 2