1. Below is a consumer choice model featuring two goods: Gasoline & Electricity as used in automobile travel. a. Suppose in an attempt to ration the use of the electrical grid, the government of Colorado decided to set a maximum consumption limit of 100 kW hours of electricity consumption per driver. Use the model to understand what effect this law would have on consumption and utility. b. Now suppose that the government were to set the limit on electricity consumption at 50 kW hours. Again, diagram what effect this would have on consumption and utility. 2. Answer the following questions about the Monopoly Model: a. True/False, explain: Under monopoly consumers lose surplus, but producers gain surplus. Therefore, we cannot say for sure whether monopoly results in any inefficiency. b. What type of efficiency are we referencing in the above question? c. Does price discrimination add to or subtract from inefficiency under monopoly? D. Is price discrimination more likely to appear in manufacturing goods or in services? Explain why and provide an example