An economy produces tshirts and tank tops If consumers sudde

An economy produces t-shirts and tank tops. If consumers suddenly decide that they prefer tank tops to t-shirts, the production possibilities frontier for the economy would: expand for both t-shirts and tank tops. contract for t-shirts. O pivot outward for tank tops. not change

Solution

Production possibility curve represents the combination of two goods produced in an economy . Here the two goods are tank tops and t shirts. We are given that the consumers are preferring tank tops to t shirts which means that with the demand of tank tops has increased and that of t shirts has decreased. .

But there is no change in either the technology nor the resources we have in the economy to produce goods . So this means that the curve will not shift outward or expand as there is no technological improvement .

The curve will not pivot outward for tank top as the technological change can pivot it.

similarly It will not contract for the t shirts as the rpoduction method has not become obsolete etc .

It will only move from one combination of the goods to another ie now by remaining on the same PPC with the same level of resources as before , the economy will simply produce more of tank tops and less of t shirts . So there will be movement along the PPC ie towrds a bundle with more tank tops and less t shirts . This means that economy has chosen different set of outputs

So answer is D ) no change