Question

With your understanding of Economics (micro), talk about supply and demand, elasticity, and whether or not markets have been efficient (make sure to use examples).

Answer 1

The common demand and supply diagram retains the principle of economic efficiency within it. One common way economists describe efficiency is when one party's condition can not be changed without having to place a burden on another. Conversely, if a situation is unsustainable, at least one party will profit without placing costs on others.
Demand and supply model efficiency has the same basic meaning: The economy gets as much value as possible from its finite resources and all potential trade benefits have been achieved. In other words, the optimum quantity is generated and consumed for any good and service.

Imposing a price floor or price limit would prevent a market from adapting to its price and quantity equilibrium, thus producing an inefficient outcome. But there's an extra twist in here. Price floors and ceilings can also pass some consumer surplus to suppliers, or some product surplus to customers, along with creating inefficiency.

In a market-oriented economy, the changes of the equilibrium price and quantity often occur without any input or control from government. When Brazil's coffee crop experiences a severe freeze, then the coffee supply curve moves to the left, and the coffee price increases. Some men call them the coffee addicts keep drinking coffee and paying the higher price. Some switch to soft drinks or tea. No policy commission is required to find out how coffee prices should be changed, which companies will be allowed to process the remaining stock, which supermarkets in which cities will get how much coffee to sell or whether customers will eventually be able to drink the brew

In addition to the shift along the supply curve, over time we have observed an rise in the number of farmers moving to organic farming. A change to the right of the supply curve is defined for this. As both demand and supply have moved to the right, the resulting equilibrium quantity of organic foods is undoubtedly higher, but the price will decrease only when the supply increase is greater than the demand increase. We may need more time before we see lower organic food prices. Since the cost of production of these foods will remain higher than traditional farming, since organic fertilizers and pest control techniques are more costly