Problem
1. Define consumer and producer surplus.
2. What is the demand choke price? How does this price relate to consumer surplus?
3. What is the supply choke price? How does this price relate to producer surplus?
4. How does a supply shift affect consumer and producer surplus in a given market? Consider both inward and outward shifts of the supply curve.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.