4. Shifts in production possibilities
Suppose the fictional country of Everglades produces two types of goods: agricultural and capital. The following diagram shows its current production
possibilities frontier for millet, an agricultural good, and telephoto lenses, a capital good.
Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for
farmers to use for irrigation.
Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will
snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.
ELEPHOTO LENSES (Thousands)
300
250
200
150
100
PPF