Q1) CS = 0.5*(30-P)*q, while q = 0.5(-p + 30).
Therefore, CS = 1/4 * (30-p)^2.
CS - CS' = 1/4 * (30-p)^2 - 1/4 * (30 - p')^2 = 1/4 * (30-p)^2 - 1/4 * (25 - p)^2 = 5/4 * (55 - 2p), a decreasing function of p.
Taking derivatives, dCS/dp = 1/2 * (p - 30) < 0 (As p rises, CS decrease).
Taking the second derivative, dCS^2/dp^2 = 1/2 = constant.
Therefore, as p rises, CS falls at a constant rate.
The key is A.
Q2) The key is A.
Consider picture A. For p > pE, find the quantity of supply and quantity of demand using y = p. There is a supply shortage as S < D. Gradually, price will go up and producer would increase to response to a higher price. However, at a higher price, the D is also larger, still exceeding S. The persistent supply shortage keeps price, supply, and demand up, in a spiral route. That is, they will never return to the equilibrium.
Case B is a demand rigidity. When p > pE, S will exceed D, that is, a supply surplus. Price will decrease, then surplus is decreased. This process will continue until p returns to pE.
Case C is just the standard model.
In case D, for p > pE, we have a supply surplus. Price will then decrease, resulting in a smaller supply surplus. Gradually, p will return to the original pE.