Also explain what is economic surplus

iweb langara ca OU+O Question 2: Within the context of the supply and demand model, when is the economic surplus earned by society negative? What does this mean? Question 3: Provide an explanation for why a market that is producing a quantity of output that is less than the equilibrium quantity will not be efficient (assuming no market failures). You may find it useful to use a diagram in your answer, but it is not necessary. Question 4: What is the relationship between the "maximum price a consumer is willing to pay" for a unit of a good and the economic surplus earned on the unit of that good? Question 5: a) In your own words explain "diminishing marginal utility" and also explain why it is important to modeling consumer behaviour. b) Do you agree or disagree with the following statement? Provide support for you answer. "If marginal utility is diminishing, then total utility is decreasing." c) What does it mean for a consumer to maximizing their utility? What does it mean if they are not maximizing their utility