. Consider the markets for (a) steel and (b) automobiles. Both markets are assumed to be perfectly competitive. Answer the following questions. a. Suppose that the price falls below the market-clearing price in the steel market, but it rises above the market-clearing price in the automobile market. Indicate the impact of these events on market prices and quantities in the steel and automobile markets. Draw a separate graph for each market. Explain. b. Suppose the government eases regulations in steel industry, thereby lowering the cost of producing steel. How would the easing of regulations affect the market for steel and the market for automobiles, respectively? Draw a supply-and-demand diagram for each market. Illustrate any shifts in supply and/or demand. Indicate what happens to the equilibrium price and quantity in each market. Explain. c. Suppose that automobiles are normal goods, and that an economic expansion raises incomes. How would increase in incomes affect the market prices and quantities in the automobile and steel markets, respectively? Draw separate graphs for each market. Illustrate any shifts in supply and/or demand. Indicate what happens to the equilibrium price and quantity in each market. Explain. d. Suppose in response to positive news about trade negotiations between the US and the rest of the world, participants in the steel market expect the price of steel to fall in the future. How does the expectation of lower prices in the future affect the market for steel and the market for automobiles today? Use supply-and-diagrams to illustrate the impact of the market prices and quantities in each market. Illustrate any shifts in supply and/or demand. Indicate what happens to the equilibrium price and quantity in each market. Explain.