Causes and consequences of shifts and movement of the PPC
ECO-Production possibility curve, page no 23-24
A PPC [ production possibility curve] will shift inwards or outwards when there is a change in the amount of production factors. When production factors such as raw materials or capital increase, the PPF[ Public Provident Fund]shifts outwards, indicating that the economy can produce.
Movements along the curve: When the quantity wanted of a single commodity changes due to a change in price, while all other factors remain constant.
Shifts of curve: Fundamental changes in the balance of supply and demand that alter the quantity demanded at the same price.
THE END
341 Views