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1. Under what elasticity conditions would the following be true? "Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage."

2. The market for gasoline has changed in a couple significant ways over the last few years: new technologies have decreased the costs associated with producing gasoline, and automobiles are becoming more fuel efficient. Describe how these changes affect the supply of and demand for gasoline. What is the overall effect on equilibrium price?

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