-Answer the following questions simply and clearly

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1. Economists often say that price are a "Rationing mechanism." If the supply of a good falls, how do prices "ration" these now-scarce goods in a competitive market?

2.Is the "rationing" achieved by the price system efficient or inefficient? Why?

3.During times of crisis- such as during a hurricane -the government often prevents producers from raising the prices of certain goods including batteries, water, and gasoline. Can prices then serve as a "rationing mechanism'? Does this increase or decrease economic efficiency? Why?

When government is trying to raise tax revenue, it sometimes attempts to target higher-income people because they are in a better position to bear the burden of a tax.

4Consider the progressive nature of the U.S. federal income tax system: It's designed so that higher incomes are taxed at higher tax rates. Thinking about the elasticity of labor supply, why might it be more difficult to collect tax revenue from a wealthy individual than from a poor person, all else equal?

5.Another way governments have tried to collect taxes from the wealthy is through the use of luxury taxes, which are exactly what they sound like: taxes on goods that are considered luxuries, like jewelry or expensive cars and real estate. What is true about the demand for luxuries? Consider jewelry. Is a luxury tax more likely to hurt the buyers of jewelry or the sellers of jewelry?