1. Suppose that a buyer values a house at $240,000 and a seller at $200,000.
   1. Choose a price that both buyer and sell can agree on.
   2. Define buyer and seller surplus and from part a identify the buyer and seller surplus.
   3. Explain how the government is able to collect taxes
   4. Suppose there is a 25% sales tax paid by the seller. What happens to the deal you described in part a.