Use the following table provided below for Tasks 1 and 2.

Task 1

If the sandwich market is efficient are you able to draw diagram and clearly label the areas of the diagram that represent producer surplus and consumer surplus?

Task 2

are you able to calculate the size customer surplus producer surplus (in $) in Task 1? What does those figures indicate? Why do think there is a difference between customer and producer surplus?

Task 3

Imagine that the government has applied a $1 tax to the market you represented in the task 1 supply and demand diagram. are you able to answer how this affects total surplus? Use a supply-and-demand diagram to demonstrate effects of $1 tax.

Price Quantity Demanded Quantity Supplied (dollar per sandwich) (sandwich per hour) (sandwich per hour) 15 4250 250 16 3750 750 17 3250 1250 18 2750 1750 19 2250 2250 20 1750 2750 21 1250 3250 22 750 3750 23 250 4250