1. Explain how 'buyers' willingness to pay, consumer surplus, and the Demand Curve are related.
2. Explain how 'seller' costs, producer surplus, and the Supply Curve are related.
3. In a supply/demand diagram, discuss using your own answer from the notes and from the book how consumer and producer surplus works. Pick any product you want other than the ones you have seen so you can internalize both consumer and producer effects.
4. What is efficiency and name some products in which the government allows firm to set price without interference.
5. What is equity and name some products of which government may enter interference in the market. And who does it help and who has to pay for those equity benefits?
6. Explain the differences between price ceilings and price floors and offer different examples of both. I have added two videos below for you to watch one that discusses price ceilings and the other price floors to help you answer this last question.