Provide response to the following discussion post: There are gains from trade and specialization (economic principle #5). People will exploit opportunities or incentives to make choices that leaves them better off. A producer will provide goods and/or services that in turn consumers need creating a market with demand and supply. The consumer will look for the best price and quality and in turn producers will strive to be the producer of choice. Competition and consumer choice is what creates this equilibrium which in turns leads for resources to be optimally allocated by exploiting all opportunities, leading to efficiency, however, efficiency (exploiting all opportunities) is usually at odds with equity (fairness). Equity will typically decrease efficiency. The book provides an example related to public parking spaces, where efficiency would mean to use up all parking spots, or as much as possible, equity allocates a certain number of stalls towards disabled persons. Specialization benefits the economy and allows people to choose from where to shop for groceries, to what to study as a career. That is the reason there are doctors and there are pilots as there is a market for each trade.
