show rotation/shift in ppc when resources are increased and when there is efficient technology for production of good y

(i) Increase in resources: When available resources in the economy increases, the PPC shifts to the right (from AB to CD). 

(ii) When there is an improvement in the technology available for the production of Good Y, then the PPC rotates around the y-axis (from A to C, while the intercept at the x-axis will remain the same as technology for the production of Good X remains the same). Since, with the given amount of resources, use of efficient technology to produce Good Y will increase the amount of  Good Y that can be produced. 

  • 4
What are you looking for?