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3. We'd love to have more, but we need to compete now or else partner may not bid again. A general rule is that you bid about a half-level higher than you intended due to the preempt. We intended to raise to 2, but we have a pretty good 2 bid so we raise to 3. If we had, say, 

 K54  
 543  
 Q42  
 J542, 

we would pass. 

Pass. While you know that you have a spade fit, you don't want to bid to the 3-level without some extra values. You don't need 16 or 17, but you need a non-minimum. This hand was a minimum to begin with and Qx of hearts is looking worse and worse. Partner can double again with an appropriate hand. 

Pass. Now the opponents are coming into your 2 auctions!?! Yes, this type of interference is becoming more and more popular. Double would be takeout, but you don't have the right shape for that. Passing says that you likely had a 2NT rebid, but can't make that call now because you do not have a stopper. That describes this hand. Partner must do something in balancing seat. 

3. You didn't have to bid once East raises, so this shows values and 4 or more spades. A double by you would be a responsive double, showing the right values, but without a clear suit to bid (often looking for 3NT). 

2. Yes, you'd like to have a few more points, but competing in this context just shows a reason to bid. In this case, that spade suit is a good reason to come into the auction. 

Other. We want to cuebid to show a limit raise or better, but the opponent has cuebid first! After a Michaels cuebid, you can still use a cuebid. The suit that the opponents have promised in this case is hearts (and a minor). Bidding 3, then is a cuebid for spades. As we saw earlier in this quiz, 3 might be bid on much less than this.