1.Due to the pandemic, the Fed has kept interest rates close to 0% and recently, the market has observed a shortage of lumber. What are the impacts of these changes on the market for houses, explain how these changes affect the demand for houses and/or supply of houses? Indicate whether equilibrium price and quantity increase, decrease or stay the same.

2.Explain how an increase in nurses' salaries affects the demand for medical care and/or supply of medical care. Indicate whether equilibrium price and quantity increase, decrease or stay the same.

3.The demand curve for haircuts at Tanas Hair Design is given with the following equation P = 40 - 0.40Q where Q is the number of cuts per week and P is the price of haircuts. At a price of $15, should Tanas raise the price of the haircuts? Why or why not? Show your work.