In class, we studied how governments solve various problems by regulating markets. This exercise is precisely in that spirit. You act as a government and your task is twofold. Part A (5 points) Describe one problem that you want to tackle. The problem should be close to your heart. It does not have to be a huge social issue. A problem affecting your local neighborhood, your country, or the world; the choice is entirely up to you. Make sure that your description of the problem is clear to the reader. Importantly, explain why you want to solve this specific problem. Naturally, the problem you think about should not be a repetition of what we have already done in the class. In addition, you should limit your attention to the problems that can be solved by market interventions as, in Part B, you will be designing a policy that is supposed to shift a market equilibrium from undesired to desired. We are going to rely on the demand-supply model. Part B ( 15 points) Now, it is time for the policy design and analysis. As indicated in Part A, your problem should be solvable by market interventions. (If not, then revisit the problem you focus on.) In class, we studied how governments solve various problems by regulating markets. This exercise is precisely in that spirit. You act as a government and your task is twofold. Part A (5 points) Describe one problem that you want to tackle. The problem should be close to your heart. It does not have to be a huge social issue. A problem affecting your local neighborhood, your country, or the world; the choice is entirely up to you. Make sure that your description of the problem is clear to the reader. Importantly, explain why you want to solve this specific problem. Naturally, the problem you think about should not be a repetition of what we have already done in the class. In addition, you should limit your attention to the problems that can be solved by market interventions as, in Part B, you will be designing a policy that is supposed to shift a market equilibrium from undesired to desired. We are going to rely on the demand-supply model. Part B ( 15 points) Now, it is time for the policy design and analysis. As indicated in Part A, your problem should be solvable by market interventions. (If not, then revisit the problem you focus on.)