Explain why an increase in demand leads to a larger increase in price but a smaller increase in quantities supplied. Discuss some production factors that may cause this inelastic supply.

1 Describe why there can be a shortage in a market for a product
2 Describe why there can be an excessive supply in a market for a product
3 Explain why an increase in demand leads to a larger increase in price but a smaller increase in quantities supplied. Discuss some production factors that may cause this inelastic supply.
4 Explain why a decrease in price leads to a smaller change in quantity demanded. Provide a real world example  showing such demand inelasticity
5 Define Pareto efficiency and provide a real world example describing the process where Pareto efficiency is achieved and where Pareto efficiency is not achieved
6 Discuss three conditions where market failures occur

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