1.1.Draw the standard supply and demand curves for a market (e.g., boxes of donuts), please find and label the market equilibrium, price, and quantity, why is this point an equilibrium. 1.2.Why are the demand and supply curves move in the direction that they do? What is the economic rationale behind this movement? 1.3.What are the key assumptions required for the above market to generate the largest overall welfare for society? 1.4.How do the key assumptions interact to make sure that the highest social welfare is achieved