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Think about your own experience as consumer

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Question 1.

Think about your own experience as a consumer. Identify a product or service for which you personally realize a large amount of consumer surplus. Why is your surplus so large for this product or service?

Question 2.

Provide an example of a good that is either taxed or subsidized in such a way that attempts to account for the externality it creates. Describe the positive or negative externality associated with this good and the purpose of the tax or subsidy.

Question 3

Provide an example of a product or service for which you have very elastic demand? Why is your demand for this product so elastic?

Reference no: EM133174294

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