Suppose an economy in a cold climate makes sweatshirts and pizzas. The accompanying table shows several of the economy’s efficient output combinations. Draw the production possibilities frontier for this economy on a graph with the quantity of pizzas on the horizontal axis and the quantity of sweatshirts on the vertical axis. Label this curve PPF₁.

Now suppose new oven technology increases pizza production by 50%. In other words, for each quantity of sweatshirts that can be made, the quantity of pizzas that can also be made is 1.5 times higher than before. Draw the new PPF and label the new points F, G, H, I, and J, from right to left. Label this curve PPF₂. Explain why one point on PPF₁ is also on PPF₂.

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Product Pizzas Sweatshirts Output Combinations (hourly output using all available resources) A 16 0 B 12 8 с 8 00 14 D 4 18 E 0 20