if we move from one point to another on PPC what does it mean??
it means the production of one good has increased leading to a fall in production of other good
eg: it there are two goods produced x and y in the combination 5 units of x and 3 units of y and if from production of y the producer is earning more profit because of change in its price the producer will increase the production of y and as resources are fixed will withdraw some units of y. then there will be a shift in the point from(5,3) to let say (2,6) .
eg: it there are two goods produced x and y in the combination 5 units of x and 3 units of y and if from production of y the producer is earning more profit because of change in its price the producer will increase the production of y and as resources are fixed will withdraw some units of y. then there will be a shift in the point from(5,3) to let say (2,6) .