eco 365 week 4 learning team

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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 with
consumer surplus?

2. Use either the word elastic or inelastic to complete the following
sentences:

a. Deadweight loss with taxes is greater when demand is
__________.

b. The amount of surplus transferred from producers to consumers
with a price ceiling is greater when supply is __________.

c. Producers are willing to spend more to lobby government’s support
for 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, because
demand 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 direct
regulatory program? Why?

 

Format your paper consistent with APA guidelines.

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