Answer the questions below in the text image provided

Question 1 (5 points) Ruhm (2000) finds that when the unemployment rate increases, the likelihood of smoking cigarettes decreases by 0.3 percentage points and, conditional on being a smoker, the number of cigarettes smoked per day also decreases. This suggests smoking cigarettes is a normal good. Using your knowledge of the Grossman model, what might explain these results? (5 points)On December 20, 2019, President Trump signed legislation to raise the federal minimum age for purchasing tobacco products from 18 to 21 years. Using the supply and demand framework, explain how this would affect the quantity of cigarettes sold and price of cigarettes in equilibrium. You can assume taxes are held constant and ignore the fact that states have minimum pricing laws on cigarettes - in other words, assume prices can freely adjust. (5 points)California has a paid family leave (PFL) policy that allow individuals that partially replaces their income (up to some limit) while taking time off work to care for family members (typically infants, but also the sick and elderly). Consider a pregnant mother in California deciding whether to use PFL or stay at her current job. Considering time inputs to health, market health inputs, and income, clearly explain the tradeoffs associated with this decision and the potential relationship to the child's health (you can assume the mother cares about the child's health and the child's health is normal good). (10 points) Would you expect the take-up of PFL to differ between mothers with high versus low levels of education? Explain (5 points)