Econville suffers from a massive earthquake and tsunami that destroys a fourth of its physical resources. What happens to the production possibility frontier?
a. The production possibility frontier does not change.
b. The production possibility frontier shifts to the right.
c. The production possibility frontier shifts to the left.
d. The production possibility frontier shifts down for capital goods but does not change for consumer goods.
c. The production possibility frontier shifts to the left.
Economics
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When income falls
A) the demand for a normal goods rises. B) the demand for an inferior goods rises. C) there is a movement downward along the demand curve for a normal good. D) there is a movement downward along the demand curve for an inferior good.
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