1. In the summer of 2020 gasoline cost less than $2 per gallon. As you are taking this exam it is now well over $3 per gallon. Which of the following is therefore true? a. The price of gasoline is efcient at this time if quantity demanded equals quantity supplied but not necessarily fair at any price. b. The transaction cost of buying gasoline is still relatively low since there are a lot of gas stations with prices prominently displayed. c. The invisible hand is responsible for pushing prices up to the current level. at. As prices have increased, demand has not changed but quantity demanded has fallen some. c. All of the above. 2. As of early November 2021, even though factory wages are rising there is still a shortage of factory workers. This means that: a. Wages are at equilibrium but the resource directing role of prices is not working. b. An increase in the minimum wage is the only sure way to bring this market to equilibrium. 0. The information being conveyed is that factory wages are still below equilibrium. at The quantity of labor demanded is lower than quantity supplied at this time. c. The supply of labor is greater than the demand so wages will not continue to rise