I really hope when answering this, it is detailed.

1. Give an example of a non-market situation in which the outcome is inef- ficient equilibrium. Explain carefully why the outcome in your example is both an equilibrium and Pareto inefficient. [3 points] Note: Your example should be of a real world situation, rather than just a variant of the static general equilibrium model. The purpose of this question is to test that you know i) what an equilibrium is, and ii) what Pareto efficiency is. This means that a simple example with a clear explanation is much better than a complicated example that is hard to explain