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How does surge pricing ensure that the market is allocative efficient?Explain how the consumer and producer surplus changes as a result of the price surge. Why would these changes upset customers?c. Provide one alternative to surge pricing. Task 6: Market PowerQ1. How does a network externality serve as a barrier to entry?Is this barrier surmountable?Explain. Q2. Explain the economic concept of price elasticity of supply. What are the 5 key determines of price elasticity of supply. Use examples to explain your answer. Q3. For each pair of items below, determine which product would have a higher price elasticity of demand in absolute value and which one a lower price elasticity of demand.
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