Rotation of Production possibility curve
Rotation of Production possibility curve: PPC can rotate in following circumstances.
1-Improvement in the technology in the favour of good -X : If there is an improvement in the technology in favour of goods -X then the production of goods-X raise on that the particular resources but production of goods-Y remains the unchanged accordingly PPC rotates.
Fig-6
Before the improvement in technology in the favour of goods-X the PPC is ab but after improvement it rotates and be ac.2-Improvement in the technology in the favour of good -X : If there is an improvement in the technology in favour of goods -Y then the production of goods-Y raise on that the particular resource but production of goods-X remains the unchanged accordingly PPC rotates.
Fig-7
Before the improvement in technology in the favour of goods-Y the PPC is ab but after improvement it rotates and be ac.Note: If any technical improvement done in favour of both goods then PPC will shift, not rotate.
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