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Guatemala produces either 1000 pounds of coffee or 3000 pounds of sugar in a year. Then for every one pound of coffee produced, give up 3 pound of sugar, hence opportunity cost of producing coffee in terms of sugar is constant & hence PPC is a linear graph .

PPC 3000 2400 1800 1200 600 coffee (in pounds)

Going back to the original PPC in the first question, there is now a new change. New technology in the sugar refining sector has allowed Guatemala to increase its annual production of sugar to 4000 pounds. How would you show this on the PPC?  (How would this current graph of the current PPC change to a different graph PPC. Please upload a graph.)

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