For PCs
the location for the graphics.py file should be
c:\Python34\Lib\site-packages

For Macs which have Frameworks installed
the location for the graphics.py file should be
/Library/Frameworks/Python.framework/Versions/3.4/lib/python3.4/site-packages

for ANY computer
You can always put the graphics.py file in the same folder as your source code. Make sure you have saved your source code in there too!