Respond to both statements with a minimum of 110 words each: 1) The laws of supply and demand state that as consumers see rise in prices, they will consumer less. This smaller consumption will lead to lower demand, which will drive prices lower due to unsold inventory. However, when it comes to price of fuel, a steady increase in prices doesn’t seem to be driving demand much. However, if the price breaks a certain “psychological pricing” point around $5 per gallon average nationwide, the demand for fuel just drops like a rock. How can we explain this unusual behavior for fuel? What does everyone think? 2) Cleaning supplies like bleach and Lysol wipes seem to have vanished very quickly during the beginnings of the COVID pandemic. However, manufacturers did not choose to significantly increase the production of such products even though they were selling faster than at any time in history. Class, why wouldn’t companies want to increase their production if they are selling their products? What do you believe is the difference between increase in short run demand and long run demand? What does everyone think?