1. A recent study (really) estimated the determinants of the pay basketball players in the NBA. The following (simplified) equation gives the results of the study: ln(wages) = a constant + 0.008 average minutes played per game + 0.013 average points scored per game + 0.079 years of NBA experience + 0.047 crime rate of the team's home city + 0.174 city is located in a cold climate The "city is located in a cold climate" is a 0f1 variable that equals one if team's city is located in a cold climate. Every coefficient, for what it's worth, was statistically significant. The mathematical form of this equation seems a little odd, but, basically, the positive coefficients mean that each of these factors raises pay. That is, you are paid more if you play more minutes per game, live in a cold climate, etc. a) Players located in cities with higher crime rates receive more pay. Is this what economic theory says should happen? Explain, using a supply/demand graph in your answer. b) Players who score more points get paid more. Is this what economic theory says should happen? Explain, using a supply/demand graph in your answer. c) Players located in colder climates receive higher pay. Is this what economic theory says should happen? Explain, using a supply/demand graph in your answer. d) Can any of the wage effects in parts a)-c) be considered compensating wage differentials? If so, which ones? Explain