Part II: Short problems (10 points) In standard economics, markets are always in balance (equilibrium), meaning that in a market where prices can be easily adjusted, there are never any shortages. But this is not always true, e.g., hardware stores often face a shortage of snow shovels the day after a blizzard. To understand why this happens, a survey was conducted with the following question: "A hardware store has been selling snow shovels for $15. The morning after a large snowstorm, the store raises the price to $20. Please rate this action as: Acceptable, or, Unfair" In this example, 82 percent of respondents (N=107) considered it unfair for the hardware store to take advantage of the short-run increase in demand associated with a blizzard. A majority of storeowners explained they already understood this, and this constrained their pricing behavior. If you believe in rationality, would you see anything wrong with this response? How can you use this response to explain the existence of 'shortages