1. [10 participation points] European farmer's hold large political power and influence policy to get government protection. Consider the effect of a price floor that increases the free-market price on agricultural products under two scenarios: (1) Elastic supply, and (2) inelastic supply. Analyze and draw the effects of a price floor on consumer and producer surplus in each case. In which case is the transfer of surplus to farmers larger? In which case is the deadweight loss larger? Do you think agricultural products have a high or low supply elasticity? 2. [5 participation points] Now focus on the case of inelastic supply and instead of a price floor, consider the effects of a subsidy. Would farmers prefer a subsidy or a price floor? What about consumers? Suppose that in the economy you are studying there are 3 types of goods and you know the following about their sales (including export sales) in 2022 and 2023: Price 2022 Quantity 2022 | Price 2023 Quantity 2023 You know that every year 20% of the mountain bikes are imported and the rest is produced domestically, while 20% of the ropes are exported in every year (international and domestic prices are always). Tires are entirely produced and sold domestically. Finally, you know that all the tires are used in the production of mountain bikes. 1. [5 participation points] Calculate nominal GDP in 2022 and 2023 and nominal GDP growth in 2023. 2. [5 participation points] Calculate real GDP in 2022 and 2023 and real GDP growth in 2023. 3. [5 participation points] Calculate the CPI'in 2022 and 2023 and CPl inflation in 2023. Also calculate the PPl in 2022 and 2023 and PPl inflation in 2023. 4. [5 participation points] Calculate the trade deficit in 2022 and 2023. 5. [5 participation points] Would you say the economy has improved between 2022 and 20237