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 2024, Tesla temporarily shuts down part of the Gigafactory for an extensive renovation, and this reduces the amount of production capacity available for both types of batteries.This is best represented by the
A)movement from E to F in Graph A.
B)movement from H to J in Graph B.
C)movement from K to L in Graph C.
D)movement from J to G 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 2024, Tesla temporarily shuts down part of the Gigafactory for an extensive renovation, and this reduces the amount of production capacity available for both types of batteries.This is best represented by the
A)movement from E to F in Graph A. 
B)movement from H to J in Graph B. 
C)movement from K to L in Graph C. 
D)movement from J to G in Graph B.

Quizplus · Accepted Answer

The reduction in production capacity for both types of batteries is best represented by a leftward shift of the entire production possibilities curve in Graph C, resulting in the movement from K to L. A and B are incorrect because they show changes in the slope or shape of the curves, which are not as relevant to a reduction in production capacity. D is incorrect because it shows an increase in production capacity rather than a decrease.

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