1} Many economists are against a minimum wage law. Show GRAPHICALLY why a legal minimum wage set ABOVE equilibrium may lead to unemployment. How does the elasticity of demand help to determine the extent of this unemployment? Can people who earn low wages be helped in ways that will not lead to unemployment? 2) Do you agree or disagree with the following statement? "A rm that suffers losses in the short- run will always be better off if they shut down." Explain your answer using the concepts of fixed costs, variable costs, marginal costs & total costs. 3a) Assume country XYZ can produce houses and software programs. Given XYZ's current technology and resources, the table below shows the different combinations of houses and software programs that it could produce during 2016 using all their resources in an efficient manner. Draw the production possibilities curve on the attached sheet of graph paper. Software Houses 0 20 2 18 4 14 6 8 8 0 3b) Assume a technological advance occurs in the production of computer software. Draw the new production possibilities curve using the same set of axes as you used previously. 4) Suppose we are analyzing the market for hot chocolate. illustrate GRAPHICALLY the impact each of the following would have on demand and/or supply for hot chocolate. Clearly show how equilibrium price & quantity have changed. Make sure your axes & curves are clearly labeled. Winter starts and the weather turns sharply colder. A better method of harvesting cocoa beans is introduced. The price of whipped cream falls. Producers expect the price of hot chocolate to increase next month. 5) This week you have gone to 2 parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party and your total utility rises to 110 utils. What is the marginal utility of