Questions:
Solve and provide an answer to the four following questions. Your answer should include a thorough response indicating a complete
answer to the question with any examples that would further explain the answer.
1. Why does nearly every purchase you make provide you withconsumer surplus?
2. Use either the word elastic or inelastic to complete the followingsentences:
a. Deadweight loss with taxes is greater when demand is__________.
b. The amount of surplus transferred from producers to consumerswith a price ceiling is greater when supply is __________.
c. Producers are willing to spend more to lobby government's supportfor a price floor, or to restrict supply, when demand is __________.
d. Rent controls cause more damage in the long run because,compared to the short-run supply of rental housing, long-run supply is more __________.
e. Luxury taxes do not really hurt buyers of luxuries, becausedemand for luxuries is __________.
3. State three reasons for a potentially beneficial role of government
intervention.
4. Which is more efficient: a market incentive program or a directregulatory program? Why?
Format your paper consistent with APA guidelines.