1. The last trip I took was to New York. I paid for the trip using my credit card reward points so I did not actually spend any money out of pocket during the duration of the trip. My friend exclaimed to me "I can't believe you had a free trip to New York!" Explain whether or not my trip was actually free.

2. Suppose that the supply for a good decreases and at the same time the demand increases.

Part A) What will happen to the quantity of the good bought and sold (equilibrium quantity) or is it impossible to tell?

Part B) What will happen to the price, or is it impossible to tell?

Hint: It may be helpful to draw a graph (or graphs) to answer this.