ROTATION AND SHIFT OF PPC

 JOIN VISHNU ECONOMICS SCHOOL

µ Shift and rotations in PPC/PPF:

The shift of PPF: PPF can shift rightward or leftward when there is a change in production capacity of both the goods.

i.        Rightward Shift in PPC: When there is the growth of resources or advancement of technology for both the goods, PPC will shift towards the right. It shows the production of both goods will rise.

(Forward shift)

i.        The leftward shift in PPC: When there is a decrease in resources of degradation of technology, for both the goods, the PPF will shift to leftward which indicate the production of both goods decreases.

(Backward shift)

1.    Rotation in PPF: PPC can rotate when there is a change in the production of only one good due to change in technology or resources.

      i.        Rotation of PPC on X-axis: where there are increasing resources or advancement of technology for production of the commodity of X-axis, then PPC rotates outward on the X axes. It shows an increase in the production of X goods.  On the other hand where there is decrease resources or degradation of technology for production of the commodity on X-axis, then PPC rotates inward on the X axes. It shows an increase in the production of X goods.(Diagram A)

Rotation of  PPC on Y-axis: where there are increasing resources or advancement of technology for production of the commodity of Y-axis, then PPC rotates outward on the Y-axes. It shows an increase in the production of Y goods.  On the other hand where there is decrease resources or degradation of technology for production of the commodity on Y-axis, then PPC rotates inward on the Y axes. It shows an increase in the production of Y goods. (Diagram- B )