Question 1 8 pts The graph shows a market at equilibrium price $600 and equilibrium quantity 300 where demand curve intersects supply curve. Short answer 1. for question 1 Harm for product I S 1100 Won {5) D 100 200 300 4'00 500 500 Quantity Use graph shown above to help you answer questions a-d. a] Choose a binding "price ceiling" on this market. b) Describe two long run disadvantages of imposing price ceiling on a product. c) What is producers surplus at 100m unit of output. cl) Describe a good or a service that might rationalize imposition of a price ceiling for. Briey explain why you chose that good or service. Question 2 8 pts Using the combined supply and demand graph for soybean below, show how the following event will affect this market: - Event: Farmers who are currently supplying soybean on all their land witness a sharp increase in price of corn. (The graph is presented only to help you visualize the market equilibrium, you need not reproduce it). Question 1: Will this event affect the demand (curve) g the supply (curve)? Question 2: Will it increase g decrease? Question 3: Will equilibrium price increaseg decrease? Question 4: Will equilibrium quantity increase g decrease? Price P1 So beans Q 3' > > > >Answer in the format shown below: Question 1: (demand/supply) will be affected. Question 2: (demand/supply) will.. (increase/decreases). Question 3: Price will (increase/decrease) Question 4: Equilibrium quantity will (increase/decrease)Question 3 8 pts Using the combined supply and demand graph below, show how the market for product X is affected due to the following event: . Event: Price of Y, a substitute for good X, decreases relative to price of X, other things constant. {The graph is presented only to help you visualize the market equilibrium, you need not reproduce it). Question 1: Will this affect demand g supply for goo X? Question 2: Will {demand/supply increase g decrease? Question 3: Will equilibrium price increase g decrease? Question 4: Will equilibrium quantity increase g decrease? Short answer 11 for question 3 Supply Demand Gaul I > > > >Answer in the format shown below: Question 1: (demand/supply) will be affected. Question 2: (demand/supply) will (increase/decreases). Question 3: Price will (increase/decrease) Question 4: Equilibrium quantity will (increase/decrease)Question 4 Use the "Law of Diminishing Marginal Utility" to explain the Law of Demand