There are 2 goods being produced in an economy i.e. shirts and sandals. Now, due to advancement of technology, production of the sandals increased. Which of the following options holds true in regard to the statement?

Rotation of the PPC

The correct answer is option 3: Rotation of the PPC

As, the advancement of technology only benefitted the production of sandals, that means now more sandals can be produced. Thus, there will be a rotation in the PPC indicating same amount of shirts but more sandals. In the following graph sandals are denoted with good x and shirts are denoted as good y.