Suppose a new type of pest, which is immune to existing pesticides, attacks the wheat crop. As a result, at a given quantity of clothing, the economy is able to produce fewer bushels of wheat than before the attack of the new pests. Adjust the PPF curve to show the economy's new production possibilities after the attack of the new pest.
IN regards to the PPF curve will both the quantity of wheat and clothing decrease. I am confused by the sentence
"As a result, at a given quantity of clothing, the economy is able to produce fewer bushels of wheat than before the attack of the new pests"
The production of wheat should have little effect on the production of clothing: "at a given quantity of clothing, the economy is able to produce fewer bushels of wheat"
So the opportunity cost for each bushel of wheat has just increased, because the maximum production of wheat at each quantity of clothing has just decreased.
One side of the curve - the side with wheat - will decrease; the side with clothing will remain unchanged.