QUESTION 12 [4 Marks} "Intel CEO Pat Gelsinger is putting the pressure on the US. government to help subsidize chip manufacturing, insisting the current reliance on plants in Taiwan and Korea as 'geopolitically unstable." Which panel of Figure 12.1 would represent a situation where the above lobby action is successlul given the current increasing usage ol chips? Pruner-I Wit-nerl'l'l Figure 12.1 a) A b) B c} C d) D QUESTION 13 [4 Marks} Robert Miller has a takeaway shop. Miller Place. which is known in the community for selling the best hamburgers in town. He has to compete with many other takeaway shops that also sell hamburgers. Miller's hamburgers are a little bit more expensive than those of some ol the other shops. lvliller uses 100% beel patties for a hamburger and a 'secret' trimming which distinguishes his hamburgers lrom his competitor's hamburgers. Although Miller can decide what price he wants to ask for hamburgers he is selling. he is very concerned about the increase in the petrol price. Which of the following statement describes the market that Miller's business is operating in? a) Miller as a monopolistic competitive supplier. maximises prolits at the price and output level ol hamburgers at which marginal revenue is greater than marginal cost b) Miller is a price leader: he can determine the prices and output where marginal revenue is equal to marginal cost c} If Miller lowers the price of his hamburgers the sales will increase. it he raises the price slightly. he loses some but not all customers to competitors d) In the long run suppliers in the market will earn economic prot and each individual suppliers demand for its product will increase QUESTION 14 [4 Marks} Consumer demand for meat has continued to rise throughout the pandemic. despite higher prices. according to a recent analysis from CoBank. Beef consumption has grown 1.4% from 2019 to 2021 even as combined retail prices increased by more than 20%. the report found. And for chicken. both consumption and prices hit record-high levels in 2021. But as beef prices continue to increase. consumers may begin to "trade down\" when deciding which protein to purchase. CoBank said. with chicken most likely to benet. The USDA is expecting a slight decline in beef consumption in 2022-23 as domestic supplies fall with shrinking cattle herds and growing exports. CoBank noted\". If the quantity demanded of chicken increases by 5% when the price of beef increases by 20%, the cross elasticity of demand between chicken and beef is J 2.5 b] -4 } 4 0.25