Question: Question 1 1.1. Define 'consumer surplus. For a given demand curve, what happens to the consumer surplus as the market price rises and falls? (You

$Question 1 1.1. Define 'consumer surplus\". For a given demand curve,$

Question 1 1.1. Define 'consumer surplus\". For a given demand curve, what happens to the consumer surplus as the market price rises and falls? (You can use a diagram if you wish.) 1.2. How does the price elasticity of demand for a product impact on the consumers' 'burden' of a sales tax on that product? Explain by using the examples of cigarettes and restaurant meals. (You can use a diagram if you wish.) 1.3. Give an example of a real-world situation where you think the imposition of a tax would be beneficial. (Beneficial to whom?)

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