6. (16 Points) Discussion Questions: Provide brief answers to the following questions. (a) (4 Points) A general principle in economics is that prices are determined by the intersection of supply and demand. Then why did we talk about situations arising whereby the supply curve pins down the price, and the demand curve pins down the quantity? Explain briey. (4 Points) This winter break, someone may hypothesize to you that machines are going to replace many workers in the future and there will be persistent large-scale unemployment. What have you learned about this, and what would you say to the person? (4 Points) Say an automaker with market power is building cars in two factories, in Detroit and Mexico City. Wages decrease in Mexico City only. What should you expect to happen to production in Detroit? How does this compare to the case of a perfectly competitive automaker? [4 Points) If someone told you that consumption of some good could increase when its price increases (or consumption of some good could decrease when its price decreases), because the income effect can outweigh the substitution effect, what would you briey tell that person about when that might actually occur or not