2. Explain what economists mean by "fully efficient." Is the market equilibrium price/quantity a fully efficient allocation? Explain why/why not. Its efficient if it is impossible to increase the output of one good without decreasing the output of another 3. In times of crisis (hurricanes, pandemics, etc.) many people argue against "price gouging," or raising the price of certain goods due to the increased demand/limited supply. Discuss the potential consequences/results of anti-price gouging laws. 4. What are the reasons a government might put a tax on a good? To impose tarrifs for many reasons... protect industries, national defense, US employees, trade policies, environment 5. Explain the difference between a tax on consumers vs a tax on consumers. How does this affect the incidence of the tax? 6. Explain the "tax wedge." Ratio between taxes paid by an average single worker without children and the corresponding total labour cost for the employer 7. Explain how elasticities (of demand/supply) affect the deadweight loss of taxation. Taxes always take percentage of the price, the higher the more money goes to the gov 8. Explain how the elasticities (of demand/supply) affect the incidence of the tax. Personally I don't think it is effected too much