In the mid-1990s, there was a sudden wave of lawsuits against tobacco companies and the annual salary of lawyers working for tobacco companies rose to $200,000. At the same time, the annual salary of lawyers working for cultural institutions like art museums and opera houses was $80,000. (Based on an exam question.)

Q1a) Using the graph provided, explain why salaries for tobacco company lawyers increased.

(You will upload your graph at the end of the question.)

Q1b) Over time, what would you expect to happen to the salaries of tobacco lawyers (assume the wave of lawsuits is not temporary)?

Illustrate your answer using the graph from Q1.1. (You will upload your graph at the end of the question.)

Explain your reasoning.

Q1c) Over time, what would you expect to happen to the salaries of lawyers at cultural institutions, both relative to their past salaries, and relative to salaries of tobacco lawyers? Explain why.

Salaries Supply of tobacco lawyers (before lawsuits) Demand for tobacco lawyers (before lawsuits) Quantity of labor