Problem 1: [10 Points) The following events occur one at a time. a. b. C. d. The price of crude oil rises. The price of a car rises. All speed limits on highways are abolished. Robots out car production costs. Explain the effect of each of these events on the market price and the equilibrium quantity for gasoline. Problem 2: [10 Points) The demand and supply curves for a good areasfollows: Q = 40 + RC) = 50- 2F a. b. C. d. e Which one of the above equations is the demand equation and which one is the supply equation? When P = $10, what is the difference, if any, between QD and Q6? Will there be shortage or surplus at this price? When P = $2, what is the difference, if any, between QD and Q5? Will there be a shortage or surplus at this price? What are the equilibrium values of P and Q? Show your answer graphically too, Problem 3: [10 Points) For each of the following changes, show the effect on the supply curve and state what will happen to market equilibrium price and quantity in the short run. a. sec? The government requires pollution control lters that raise costs on goods. Wages of workers in this industry fall. There is an improvement in technology. The price of the good falls. Producers expect that the price of the good will fall in the future