2. The Dutch oil discovery in the North Sea has increased the easiness in producing oil (X-axis) compared to other goods, such as "Innovations." (Y-axis)

a) With the oil discovery, what would to the opportunity cost of producing "Innovations"?

b) (2 points) Draw the two PPF lines to present the fact above.

c) (4 points) Because "Innovation" needs to be created to sustain more Innovations. In the future-term, what would happen to the PPF line if the economy chooses to produce more oil now?