A brief differentiation between shifts of PPC's and changes in slope

1. SHIFTS IN PPC’S VS CHANGES
IN SLOPES
PREPARED BY SANDREA BUTCHER

2. SHIFTS
• A shift in a production possibility curve (ppc) is caused
when resources for both goods change.
Reduction in
resources
Increase in
resources

3. CHANGES IN SLOPE
• Sometimes some of the resources peculiar to one
product changes.
• When this occurs, the maximum amount of that good
increases, while the maximum amount of the other
goods remains unchanged.

4. • In the following diagram, Canada gets more maize (corn)
from South America.
• The output of tortillas will increase from 650 to 900.
• Since ovens are not made with corn maximum output is
unchanged.

5. • Conversely if the resources peculiar to one product
diminish, the maximum amount of that good
produced will reduce while the maximum amount of
the other good remains unchanged.
Good X
Good Y
PPC1
PPC2