7. The state government of Arkansas tried to support soybean price, by paying farmers not to plant soybean on some of their land. If we assume demand curve for soybean remains the same, which statement is correct A. The supply curve shifts to the left, and new market price would be higher. B. The supply curve shifts to the right, and new market price would be higher. C. The supply curve shifts to the right, and new market price is unchanged. D. The supply curve shifts to the left, and new market price is unchanged. 8. Larry is going to sell his 2015 Ford Focus price. His bottom line for this car is $8,000. If he sells his car to a dealer, he can get $7,500. He also posted his car on Craigslist by owner, at a higher price $9,000. One day, he made a deal with someone and sold his car at $8,700. How much is Larry's seller (producer) surplus from this transaction _? A. $1,500 B. $1,200 C. $1,000 D. $700. I 9. Suppose the federal government will start a new tax on automakers in 2020. Also, due to geopolitical uncertainty in the Middle East, crude oil supply would be much lower than regular years. So gasoline prices almost doubled in a few months. For vehicle market, these changes mean that supply and demand have both changed. In particular, the effect on the demand is much larger than the effect on the supply. The result is that the price of autos will and the number of autos sold will A. rise; increase B. fall; decrease C. fall; perhaps change but we are not sure. D. rise; perhaps change but we are not sure. 10. Suppose housing cost in Memphis has been increasing in 2020 compared with 2019. On the other side, demand for houses and apartments in the city goes up really fast as well. Recall the Law of Demand. As an economist, you are asked by city council to figure this puzzle out. How would I you explain this pattern A. In large cities as Memphis, the law of demand of demand does not always hold. B. The higher demand of housing came from over-supply in 2019. C. There are some factors other than price shifted housing demand curve to the right. D. Housing market in Memphis is special. There is an upward sloping demand curve