1: Production Possibilities Curve . Consider a simplified economy that produces only two goods: food and clothing. Given specific resource allocations, plot a production possibilities curve and explain the concept of economic growth. Problem 2: Market Equilibrium . Describe a market situation where an increase in demand leads to a new equilibrium. Illustrate this change using a supply and demand graph, and explain the resulting changes in equilibrium price and quantity. Problem 3: Price Elasticity of Demand . Calculate the price elasticity of demand given the following information: When the price of a good increases from $10 to $12, the quantity demanded decreases from 150 units to 100 units. Classify the elasticity as elastic, inelastic, or unitary, and explain the implications for total revenue