Describe the short run and long run impact of a binding price ceiling (rent control) on the housing market. Include the important role of elasticity of demand and supply in your answer. (3 marks) b. Consider the following labour market: QDL = 70 - 2W QSL = 10 + 4W Calculate the equilibrium level of wage rate and level of employment. Calculate the level of unemployment if the price floor (minimum wage) is set at $15. (3 marks) 6. How would the following price changes affect the total revenue? That is, would total revenue increase, decrease, or remain unchanged? (3 marks) a. Price rises and demand is inelastic. b. Price falls and demand is elastic. c. Price rises and demand is of unit elasticity. 7. a. List four determinants of the price elasticity of supply. (2 marks) b. Evaluate the following statement: "A farmer is producing wheat (a necessity) on his land. The total production of wheat is Q1 bushels. The price per bushel is $P1. Due to the introduction of new hybrid seed, the farmer's productivity increases, and total production increases from Q1 to Q2. At the same time, the increase in production lowers the price from $P1 to $P2. The introduction of new hybrid seed improves the living standard of the farmer." (3 marks) c. Assume that the income elasticity of demand for good X is -3.69, and the cross-price elasticity is -1.16. What would happen to demand for X if there is an increase in income and an increase in price of Y at the same time? Explain your