1. (10 points) In recent months world petroleum prices have increased significantly, and this has led to an increase in the price of jet fuel, which is used by passenger aircrafts. Moreover, with the impact of the pandemic decreasing over time, millions of people are starting to travel in 2022. (a) What impact will this higher price of jet fuel have on the supply curve of airline travel, assuming that jet fuel is an input for airline travel? Does the supply curve shift to the left or shift to the right or does not shift at all? If the curve shifts, please explain why it shifts. (b) What impact will the increase in the desire for people to travel have on the demand curve for airline travel? Does the demand curve shift to the left or shift to the right or does not shift at all? If the demand curve shifts please explain why it shifts. (c) What happens to the equilibrium price and quantity of airline travel? Please explain and include a graph with the demand and supply curves of airline tickets. You must include one graph only and this graph should show both the original and new demand and supply curves (if the curves shift) and must also indicate the change in equilibrium price and quantity (if any). 2. (5 points) Price of gasoline is well above $4 per gallon all over the United States, and over $5 per gallon in some parts of the country. Is this due to a shift of the supply curve, or a shift of the demand curve or a shift of both the supply and demand curves. If you believe that the supply curve has shifted, please explain in what direction the supply curve has shifted and why it has shifted. If you believe that the demand curve has shifted, please explain in what direction the demand curve has shifted and why it has shifted. 3. (5 points) In March - June 2020, we had shortages of items like toilet paper and disinfecting wipes. Does a shortage imply that the price of the item is above or below the equilibrium price? Please give an explanation. You should include a graph of demand and supply with your explanation. There should be only one graph with both the demand and the supply curves. You should not include more than one graph