1. The strategy of freezing prices on vital products can be problematic. While it may seem like a good idea to keep prices low for consumers, it can lead to shortages. If the price is kept artificially low, it can lead to an increase in demand, but a decrease in supply as producers may not find it profitable to produce at the lower price. This can lead to a shortage of the product. In a demand and supply sketch, the demand curve would shift to the right (increase in demand) and the supply curve would shift to the left (decrease in supply), leading to a shortage. 2. The elasticity of demand and supply are important when considering subsidizing a good because they measure how responsive quantity demanded and supplied are to changes in price. If demand is inelastic, a subsidy will not significantly increase quantity demanded. If supply is inelastic, a subsidy will not significantly increase quantity supplied. In a demand and supply sketch, inelastic curves are steeper, while elastic curves are flatter. 3. Library services can be considered a public good as they are non-excludable (everyone can use them) and non-rivalrous (one person's use doesn't diminish another's). However, they