Answer
c. move the economy along the production
possibilities frontier
Work Step by Step
The discovery of the remarkable health benefits of hot dogs will make consumers prefer to consume more hot dogs. This will essentially increase the production of hot dogs due to more demand. However, with the given resources and technology available in the economy, it is only possible to produce a set of hot dogs and hamburgers as on/inside the production possibilities frontier. Therefore, due to a change in consumer preference, the production shifts to another point on the production possibilities frontier.
