Face masks reduce the risk of spreading COVID. In 2019, Singapore's small and medium enterprises branch out into mask manufacturing as new revenue source. As a student intern of a consultancy firm, you were assigned to prepare a demand-and-supply analysis for the market of face masks in Singapore. After investigation, the following TWO pieces of information extracts were collected for the analysis. Information extract 1 Some mask manufacturers in Singapore scale back production as restrictions ease By Ang Hwee Min, staff writer of CAN, 30 Aug 2022 Some companies had already scaled back production when mask requirements outdoors were lifted earlier this year. Director of AVS Technologies Kelvin Mun told CNA that the company already stopped production of face masks earlier this year, and fully shut down its mask manufacturing line in June. Everything lined up, he said, adding that the company's raw materials for mask manufacturing were used up at around the same time it was due to renew its mask manufacturing licence with the Health Sciences Authority... (Source: https://www.channelnewsasia.com/singapore/surgical-n95-mask-suppliers-shopee-lazada-mask- restrictions-indoors-2908991) Information extract 2 Masks no longer required on public transport from Feb 13 as Singapore moves to Dorscon green By Goh Yan Han, Political Correspondent of The Straits Times, 10 Feb 2023 Singapore will lift its remaining Covid-19 restrictions like requiring masks on public transport from next Monday, when the country adjusts its disease outbreak response to the lowest level. The lowering of the Disease Outbreak Response System Condition (Dorscon) from yellow to green comes as the global and local pandemic situation is stable and the disease is mild, especially among vaccinated individuals, the Ministry of Health (MOH) said on Thursday, noting that Covid-19 currently poses minimal disruption to healthcare capacity and people. However, MOH will still require mask-wearing for visitors, staff and patients in healthcare and residential care settings such as hospital wards, clinics and nursing homes, where there is interaction with patients, the multi-ministry task force handling Covid-19 said at a media conference. (a) Consider the information extract 1 only, use 1 sentence to summarize the key information before introducing the factor affecting the market for face masks in Singapore. Use demand-and-supply analysis to explain the effect on the equilibrium price and equilibrium quantity of face masks in Singapore. No demand-and-supply diagram is required but you need to describe how the curve(s) shift(s) in your written explanation. (7 marks) (b) Consider the information extract 2 only, use 1 sentence to summarize the key information before introducing the factor affecting the market for face masks in Singapore. Use a demand-and- supply analysis to explain the effect on the equilibrium price and equilibrium quantity of face masks in Singapore. No demand-and-supply diagram is required but you need to describe how the curve(s) shift(s) in your written explanation. (7 marks) (c) Considering all effects identified in your answer of part (a) and (b), what are the combined effect on the equilibrium price and equilibrium quantity of face masks in Singapore? Your analysis shows that the market price of face masks in Singapore does not change. How could this observation be possible? Explain with ONE demand-and-supply diagram. (7 marks) (d) Indicate the new producer surplus in the same diagram of part (c). Describe and explain the change of producer surplus. (4 marks)