Scenario: Imagine you have been assigned the responsibility of preparing a paper for the governor’s next economic conference. Prepare a 1,050-word paper addressing the following:Explain why equilibrium of supply and demand is desirable.Explain the following concepts using the concept of consumer and producer surplus:Efficiency of marketsCosts of taxationBenefits of international tradeDiscuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.
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