Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.

A1-1. Due to several supply-chain issues the price of computer chips has risen in recent months (this part is true and there is no need to prove it to be so). The result of this change would be to increase the price of automobiles that require many computer chips in their manufacture.

A1-2. If you had been hired to advise your local public transit authority on how they could raise transit revenues and you knew the elasticity of demand for transit rides, you would be able to give a good answer.

A1-3. Assuming that supply is somewhat elastic, the burden of a per unit tax is borne more by consumers the more elastic is the demand curve.

A1-4. The imposition of a binding minimum wage makes all workers affected by it better off