Which one of the following is NOT a determinant of demand? A) ...

[notis]

Which one of the following is NOT a determinant of demand?
 
  A) prices of related goods
  B) cost of inputs in production
  C) income
  D) future price expectations

Question 2

To correct for positive externalities the government
 
  A) should allow the price system to do the correction.
  B) can impose a tax.
  C) can give a subsidy.
  D) should create a public good.

[nmyers]

Answer to Question 1

B

Answer to Question 2

C