The figure given below shows a shift in the production-possibility curve of a country from AB to AC. Here, S1 and C1 are the initial production and consumption points respectively. S2 and C2, on the other hand, are the final production and consumption points respectively. The shifts shown in the given figure indicate that: 
A) the domestic demand for wheat is higher than the demand in the international market.
B) the country can now consume more of both goods.
C) the world price of wheat has increased.
D) the terms of trade for this country have deteriorated.
Correct Answer:
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