Figure 2-7

Tesla opened its Gigafactory near Sparks, Nevada to produce lithium-ion batteries for both its automobiles and its Powerwall energy storage products. Figure 2-7 shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions.
-Refer to Figure 2-7.Assume that in response to changing consumer demands, Tesla cuts back on the production of Powerwall batteries and increases its production of automobile batteries.This strategy is best represented by the
A)movement from E to F in Graph A.
B)movement from J to G in Graph B.
C)movement from L to K in Graph C.
D)movement from H to J in Graph B.

Question

Figure 2-7
  
Tesla opened its Gigafactory near Sparks, Nevada to produce lithium-ion batteries for both its automobiles and its Powerwall energy storage products. Figure 2-7 shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions.
-Refer to Figure 2-7.Assume that in response to changing consumer demands, Tesla cuts back on the production of Powerwall batteries and increases its production of automobile batteries.This strategy is best represented by the
A)movement from E to F in Graph A. 
B)movement from J to G in Graph B. 
C)movement from L to K in Graph C. 
D)movement from H to J in Graph B.

Quizplus · Accepted Answer

The movement from point H to point J in Graph B represents a shift in production from Powerwall batteries to automobile batteries, as indicated by the shift from a point on the Powerwall axis to a point on the automobile axis.

Figure 2-7 Tesla Opened Its Gigafactory near Sparks, Nevada to Produce Lithium-Ion