Explain the following:
a. What is total surplus and why is it greatest at market equilibrium? Use another example to help.
b. Explain the direct and indirect effects of price floors and price ceilings and why they are inefficient AND unfair.
c. Why do we use percentages in the measure of elasticities?
d. What is the effect of a price decrease on total revenue if demand is elastic and why? What is the effect of a price decrease on the total revenue if demand is inelastic and why?