1. True or false? As the price of oranges increases, the demand for oranges falls. Explain your answer.
2. The price of a gas today is higher than it was 5 years ago. Is this necessarily the result of higher demand for gas? What does this mean for the future price of gas? Explain your answers
3. In most developing countries, there are long lines of taxis at airports, and these taxis often wait two or three hours for customers. What does this tell you about the price in that market? Explain. Then illustrate, in detail, this situation with a supply and demand analysis.
4. When supply decreases...

a)What must happen to the equilibrium price in the market?

b)Fully explain why, the price must change the way it does