a. distinguish between positive and normative analyses.

b. consider the market for taxi service in a city. explain by using supply and demand diagram how each of the following how each of the following events will affect the market (price and quantity). consider each separately : bus fares increase because bus drivers go on strike; because of covid 19 every driver must pass a medical exam every morning and 5% fail; gasoline prices increase; half the downtown parking lots are converted to office buildings; the population of the city increases.

c. suppose the market price of a box of chocolates is 10 and the price of a bottle of wine is 15 and that doug has 60 to surprise his wife for valentines day. dougs wife's utility function is U=C^2 W^2 where C is chocolates and w is wine bottles. 1. what is MRS (marginal rate of substitution)? 2. how many chocolates and wine to maximize his wife's happiness? 3. show answer in diagrams