Please see attached.

1. (4p) The Department of Defense tasks you to analyze theI computer chips made to military specications (MILSPECS). Assume the market is at equilibrium. Increases in MILSPECS chip demand keep the market price on an increasing trend. Someone suggested that, to encourage MILSPECS computer chips use and enable more buyers to afford MILSPECS computer chips, the government should limit the price for a MILSPECS computer chip to no more than $500. Currently, the market price is at $700. ls this suggestion benecial to buyers of MILSPECS computer chips? _ Justify your answer, referring to a graphical illustration of the S and D model. No calculations necessary. 2. (3p) The market for a particular type of aircraft part is faced with a $50 per-unit tax. Assume the demand for the parts were more inelastic (long term contracts between buyers of aircraft parts and the suppliers locked buyers in, at least in the short run] relative to the supply. With that in mind, who faces a larger tax burden, buyers or sellers? Briey discuss, referring to a graphical illustration using the S and D model. 3. (4p) The graph below depicts the market for 4K HDTV. HDWPricelSl a. What is the amount of total surplus in this market 2000 , h 7 _ assuming no government intervention? 1m um um , v 11m 7 ., ,, HDTV mum 1m] b. Suppose the government imposes a price ceiling at $1,600, what is the total surplus in this market? Is there an efciency loss (i.e., DWL)? If so, how much? c. Suppose instead of a price ceiling. the government imposes a price oor of $1,600. What is the total surplus in this market? Is there a DWL? If so, how much