If equilibrium quantity is 10 and equilibrium price is 8, and the maximum someone is willing to pay is 20:

1.Draw a graph showing which area is consumer surplus

2.Calculate the consumer surplus.

3.What is consumer surplus in your words?

4.Define producer surplus in your words?

5.How do you know if a market is efficient?

6.Describe how the invisible hand works:

7.If equilibrium quantity is 6 and equilibrium price is 8, and the maximum someone is willing to pay is 20:

You add a price floor of 10.Draw the graph and show where is the dead weight loss if any.

8.Complete the table below.