WashburnPhillip WashburnEconomics 101: Problem Set 1- Part A1.5 10 15 20 25 30234567891011Pago-Pago Boomerage Supply and DemandMale DemandQuantity SuppliedQuantityPrice2. The Demand and supply curves have opposite slopes because as the price decreases per unitof boomerang, the supplier will not want to supply as many, due to a decrease in profits. However, when the price does go down, the consumer (the males of Pago-Pago) will want to buy as many as they can at the low price available. 3.a. If income goes down then the demand curve will move towards the lefb. The supply curve will move to the rightc. The demand curve will move to the rightd. The demand for boomerangs will increase moving the curve to the right, and the supply will move to the righte. The demand for boomerangs will move to the right, and the supply will move to the leff. The supply curve will move to the lef to account for the increased cost of productiong. The supply curve will move to the right as the cost of production moves downh. The supply curve will move to the lef to account for the added cost of the company- Part B1. The equilibrium price and demand for this graph would be a price of 7 ogaps, with the quantity at 20 units2. If the maximum price is set at 6 ogaps, then the quantity demanded would be 22 boomerangs, but only 17 boomerangs will be supplied. 17 boomerangs will be bought and sold, because the demand is higher than the supply, and only 17 will be supplied at the givenprice. The resulting situation would be the citizens of Pago-Pago competing to purchase the shortage of boomerangs being supplied. In this market, a black market of boomerangs may arise from the increased demand and decreased supply, resulting in higher prices for a boomerang than are allowed by the legislation.Washburn3. With addition of the female demand, the new equilibrium would be found at a price of 8 ogaps, with a supply of 23 units. I do not think that the boys will welcome the female players, as that is the case in any scenario where girls come into a previously male dominated arena. However, boomerang producers will be overjoyed by this new legislation as their consumer pool has now grown, allowing them to sell their boomerangs at a higher price to more people.4.a. The Equilibrium Price and Quantity (from here on called EPQ) would drop to a lower price and quantity as the citizens will want to spend less on non-necessity goodsb. The EPQ will go up as demand in Australian markets rise c. The EPQ will move to the right as more boomerangs are demandedd. The demand may go up slightly, but not much else would change with the EPQe. The EPQ will move up as people are more willing to spend money on a safe good with a return policyf. The EPQ will go down as less people demand the expensive product, but producers wish supply at the higher priceg. The EPQ will move to the right and down as more people want to buy the boomerang but less producers will want to supply as much due to the lower priceh. The EPQ will move the lef as the prices rise by the producers, and less consumers will want to purchase the higher priced