(a) Explain the difference between equilibrium, surplus and shortage. What makes surplus and shortage inefficient?
(b) Explain in detail. How and why do we return to equilibrium in each of these cases?
(c) Explain the difference between price floors and price ceilings. Use graphs to help support your answer. Why would we use floors and ceilings? What purpose could they serve?
(d) Explain the difference between consumer surplus, producer surplus, and dead weight loss and identify them on the graphs you used in question
(e) List all the factors that cause the supply curve to shift. Explain what each factor is and provide a real world example of each one. List all the factors cause the demand curve to shift. Explain each factor. Explain what each factor is and provide a real world example of each one.