1. True or False, and explain briefly. 1) The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis. 2) Assume a government likes a particular equilibrium along the contract curve. It can achieve that equilibrium through competition and income redistribution. 3) A monopoly always operates in the inelastic portion of its demand curve. 4) The less elastic is the demand for a firm's product, the greater is that firm's market power. 2. Consider the two m