Question 1 (10 marks) Work from home and stay at home restrictions impacted the markets of many household items, with discussions about toilet paper making nations and even international news. (a) What impact did COVID19 restrictions have on the market for household toilet paper? Explain using a supply and demand diagram. (5 marks) (b) States enacted policies that prevented price gouging during the coronavirus crises. Explain the impact of this policy on this market. (5 marks) Question 2 (10 marks) Consider the market for medical services when there is no health insurance using a demand supply framework with properly labelled graphs. Show how the availability of health insurance is likely to affect this market. Clearly explain how the demand or supply or both curves will shift. Discuss the impact on the market equilibrium quantity and prices. Explain why patients pay higher/lower pricesthan before. Question 3 (15 marks) Suppose due to the deepening crisis in the Middle East, there is a hike in the crude oil price. Using a demandsupply framework, model the effects of a crude oil price hike on (a) the petrol market, (b) the b_ig car market and (c) the small car market Question 4 (5 marks) Suppose the Machine rental rate decreases from $20 per hour to $10 per hour, while the rental rate of labour remains at $30 per hour. Show using a labelled Isoquant-isocost diagram what happens (before and after) to the minimum-cost combination for producing shoes. Does the production process become more or less capital intensive (i.e., higher or lower KL ratio)? Will the capital intensity (K-L ratio) of production change if, in addition, now the rental rate of labour decreases to $15 per hour