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^{2, a change in consumer taste would be shown by a} A) shift from ppf^{2 to ppf}¹. B) movement along ppf¹. C) movement along ppf². D) shift from ppf¹to ppf^2.

Question

Quizplus · Accepted Answer

A change in consumer taste would result in a movement along the current production possibilities frontier (ppf²), as it reflects a change in the allocation of resources between different goods, rather than a shift of the entire curve.

Refer to the Information Provided in Figure 2