Consider the market for a particular good, perhaps a nice Merino sweater. There are three buyers, each looking to purchase one unit of the good (one sweater). Let us say there are two different scenarios, depicted in the table below: Table 1: Willingness to Pay Scenario 1 Scenario 2 Buyer A $101 $150 Buyer B $100 $100 Buyer C $99 $50 Suppose that you construct the demand curve for sweaters, under the two different scenarios. In which scenario is the demand curve more elastic? O a. Scenario 1 O b. Scenario 2Suppose that the government otters a transaction subsidy of $100 per transaction. Which of the following statements about the impact of the subsidy is false? 0 a. The subsidy increases equilibrium qua nt'ities transacted. b. The post-subsidy price of the goods sold declines. O c. Buyers are better off if they receive the subsidy relative to if the sellers receive it. Consider our supply and demand diagram of the labor market. Which of the following curves is downward sloping? O a. Labor demand O b. Labor supply O c. Both labor supply and labor demand are downward slopingConsider the consequence of the minimum wage according to our supply and demand framework. Suppose that the government passes a regulation that raises the minimum wage. After it is increasedyou do not see a big decline in employment. Which of the following reasons could explain your observation? a. Labor demand is inelastic O b. Worker morale rises following the minimum wage's introduction, resulting in productivity increases for every worker observed by rms 0 c. Both {a} and (b) Q d. Neither (a) nor (b) Consider the consequence of an increase in immigration according to our supply and demand framework, where there is an increase in labor supply for every wage. Which of these is not a consequence of immigration? O a. A decrease in wages for the non-immigrant population O b. A decrease in employment for the non-immigrant population O c. A decrease in total employment (non-immigrant and immigrant)