Provide an example of a product or service in which you would pay above the market price. Discuss how it relates to consumer surplus.
Discuss some clues that a consumer could identify to know whether a producer has a surplus.Examine the first theorem of welfare economics and its importance. If this theorem did not hold true, how would this impact the study of economics?
Analyze how taxes can make markets fail to achieve economic efficiency and illustrate with your own examples. Discuss why the government must force market equilibrium.