Explain the terms productive, product-mix and allocative efficiency.

In a supply and demand diagram, show producer and consumer surplus in the market equilibrium.

The government levies a tax on heating oil: (i)Is the deadweight loss from this tax likely to be greater in the first year after it is imposed or in the fifth year? Explain your answer. (ii)Would the revenue collected from this tax likely be greater in the first year after it is imposed or in the fifth year? Explain your answer.