Problem 1 1- A dothing accessory company produces scarves and earrings. Below are the production possibility combinations it can produce with the resources that it has 5 carves Earrings a. Draw the production possibility curve in the space below. 10 OKNWAUG-JOO 50 90 120 145 165 185 200 215 225 230 b. Suppose technological advances increase production of both earrings and scarves by 10% without increasing costs. Demonstrate the effect of this innovation on the production possibility curve you drew above. 2- Stuffed-Crust Pizza is a new pizza introduced by Pizza Hut. What happens to the equilibrium price and equilibrium quantity of Stuffed-Crust Pizza in each of the following situations? a. Due to weather conditions, the output of wheat decreased and the price of wheat flour increased. b. The price of beer decreased. c. Domino's Pizza introduced a similar pizza that sold for $1 less than the one sold by Pizza Hut. d. A recession reduced households' income. e. A new oven technology reduced the time it takes to bake a pizza