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Please in a simple explanation, describe and or explain elasticity,
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- Define consumer and producer surplus and give a geometric interpretation of each.Please answer the following, a diagram and one paragraph should help support your answer. With consideration for elasticity (especially PED), what would be one industry in which the government instituting a subsidy would make sense and why? EXAMPLE: It would make sense for the government to subsidize the fashion industry because it is generally elastic in terms of PED, and it would benefit both producers and consumers due to etc.With the aid of a diagram, illustrate how to calculate consumer and producer surplus surplus
- O Macmillan Learning Consider the labeled areas on the graph. Select every area on the graph that represents consumer surplus. A F C E Select every area on the graph that represents producer surplus. D C E B F A Price ($) A B C D E Supply Demand QuantityDraw the graph. Highlight consumer surplus, producer surplus, and deadweight loss.With relevant examples distinguish between: (i) Producer's and Consumer's surplus, (ii) Maximum and Minimum Price
