In Chapter 7 we learned that free market is efficient based on 3 insights:
(1) The goods are consumed by the buyers who value them most highly.
(2) The goods are produced by the producers with the lowest costs.
(3) Raising or lowering the quantity of a good would not increase total surplus.
Use a supply/demand diagram of market with binding price ceiling and a supply/demand diagram of market with binding price floor and the above insights, illustrate and explain whether markets with binding price ceiling and markets with binding price floor are efficient or not. (Each insight in one market is worth 1 point, 6 total points available.)