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Shifting the PPF Curve
To raise the manufacturing of one good without reducing the production of the other, the PPF curve should shift outward. The PPF curve shifts outward as a consequence of an increase in the economy’s resources or a technological innovation or creativity that increases the output obtained from a particular quantity of resources. From point d, an extra 200 tons of factory goods or 20 tons of farm goods are now possible.
The Equilibrium Consumption Combination equilibrium for the person occurs at the point where the indifference curve, shown by II, is tangent to the budget line, portrayed by BB. T
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