2. Business travel exhibits inelastic demand while vacation travel demonstrates elastic demand. Suppose the government reduce the tax on airlines results in double the supply of both services (i.e. the quantity supplied at each price is twice what it was). a. What happens to the equilibrium price and quantity in each market? b. Which market shows a larger change in price? c. Which market have a larger change in quantity? d. What happens to total consumer spending on each market? 3. If the Marginal Product of labor is greater than that for machine, a producer can increase spending on labor and less on machine. Do you agree? Explain. (I want to have a detailed explanation, thank you so much)