4.) The United States is increasingly outsourcing jobs to India: having the work done in India rather than in the United States. For example, the Indian firm Tata Consultancy Services, which provides information technology services, increased its workforce by 85,000 workers in 2015 ("Outsourcing Firm Hiring 72,000 Workers in India," Ferencz, Traders' Magazine, January 16, 2016). As a result of increased outsourcing, wages of some groups of Indian skilled workers have increased substantially over the years. Use a supply-and-demand diagram to explain this outcome.

7.) Gasoline is typically less expensive in the United States than across the border in Canada, but now suppose that the U.S. gasoline price rises above that in Canada due to a change in taxes. How would the gasoline-purchasing behavior of a person who lives equally close to gas stations in both countries change? Answer using an indifference curve and budget line diagram.