Shifting of PPC

 Shifting of PPC : PPC can shift in following circumstances.
  • Change in resources
  • Change in technology
1-Change in resources: PPC can shift both rightward or forward and leftward or backward due to change in resources. Change in resources means either increase in resources or decrease in resources.

a- Increase in resources: If resources are increased either quantitative or qualitative we can produce more of both goods thus PPC shift rightward or forward.
Figure-3

In fig-3,When resources are increased PPC shift from ab to cd. 

b-decrease in resources: If resources are decreased either quantitative or qualitative we can produce less of both goods thus PPC shift leftward or backward.
Figure-4

In fig-4,When resources are decreased PPC shift from cd to ab.

2-Change in technology: When efficient technology comes into existence which are suitable for both goods then we can produce more of both goods thus PPC shift to rightward or forward. 
figure -5

in figure 5, when modern technology comes PPC shift to rightward.

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