Questions discussion 

1. Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. Explain how sellers’ costs, producer surplus, and the supply curve are related. Name two types of market failure. Explain why each may cause market outcomes to be inefficient.  Explain how public policy can remedy market failure. (include reference link at the end of the question, no plagiat)

2.What happens to consumer and producer surplus when the sale of a good is taxed? How does the change in consumer and producer surplus compare to the tax revenue? Explain. Draw a supply-and-demand curve with a tax on the sale of a good. Show the deadweight loss. Show the tax revenue. How do the elasticities of supply and demand affect the deadweight loss of a tax? Why do they have this effect? (include reference link at the end of the question, no plagiat)

3. When does a country become an exporter of a good? An importer? List at least five arguments often given to support trade restrictions. How do economists respond to these arguments? (include reference link at the end of the question, no plagiat)