Question 2: Use the cost benefit framework in this question. Is it always a good choice to pick the option with the lowest cost? Why or why not? Explain. Question 3: In your own words describe how a market would adjust in situations of: a) Excess Demand b) Excess Supply c ) Equilibrium As a follow up, you might think about how competition between firms for a consumers and competition between consumers to get their hands on a given good might effects the adjustment in a market. Page 1 of 1