1 10 points 1. Provide a definition and an example of each of the following fundamental economic principles (1 point per definition, 1 point per example): Scarcity Specialization . . . Comparative advantage Opportunity costs Supply and demand BIYA- A.I = = X X 14pt Paragraph fx2. Answer the questions on the right based on the following scenario: 2 2 points Pearl Market Scenario: You go on vacation for 14 days to an island in the middle of the ocean that is known for selling beautiful pearls. On day 1 of your vacation, you a. Estimate what the price of pearls would be on the last day of your vacation. buy 10 small pearls for $10 from the 100 pearls available. The next day, there is a Would the price rise, decrease or stay the same? storm that destroys the boats in the area, including the pearl divers' boats. The day you leave, you return to the pearl market and ask to buy 1 more pearl. B I U A . A . T B = =X X 14pt . Paragraph . . of 3 4 points b. Draw 1 diagram showing the supply and demand for pearls on the island before and after the storm. On the same diagram, show the shift of the supply or demand curve to the proper location. B IYA - A - T = = X XE 14pt Paragraph 4 4 points c. Use your diagram and principles of supply and demand to explain your estimated price for pearls on the last day of your vacation. BI U A . A . T =X X 14pt Paragraph