to poms) [8 marks] State whether the following statements are true, false, or uncertain. Explain your answer. 1. [4 marks] The demand curve, which is a downward-sloping straight line, crosses the supply curve, which is an upward-sloping straight line. If a tax is introduced where buyers must pay a tax of $2 per unit bought, then the equilibrium price received by suppliers will rise by more than $1 if the absolute value of the slope of the supply curve is greater than the absolute value of the slope of the demand curve. (Use a graphical approach to show your result.) 2. [4 marks] The demand function for meat was Q = 240 - 8p and the supply function was Q = 25 + 5p, where p is the price in dollars and Q is kg of meat. The government made it illegal to sell meat for a price above 15 dollars per kg. To avoid shortages, the government agreed to pay butchers enough of a subsidy for each kg of meat so as to make supply equal demand. The subsidy per kg have to be 4 dollars. Paragraph v BIU