Please each question should be a minimum of 200 words, and must be detailed, Thanks
1. What are the factors that affect price elasticity of demand and price elasticity of supply? What are some applications of each?
2. How does the “invisible hand” operate and why do market economies usually do a better job than command economies at efficiently transforming economic resources into desirable output?
3.Describe how information failures may justify government intervention in some markets. Explain just why information and mobility are important aspects of an effective market system (and what do I mean by effective?).
4.What is the origin of both consumer surplus and producer surplus? How do properly functioning markets maximize consumer and producer surplus while optimally allocating resources?
5.How do positive and negative externalities lead to under- and over-allocations of resources?
6. Why does “government failure” happen?
7.How can the government’s power to coerce (influence economic behavior) be economically beneficial?