Which of the following is a determinant of consumer demand?
A) expectation of the future relative price of a product
B) taxes imposed on firms that sell the product
C) cost of inputs used to produce the product
D) number of firms that produce the product
Question 2
When the production of one good spills benefits over to third parties, the government should consider all of the following EXCEPT
A) subsidizing the consumption of the good.
B) subsidizing the production of the good.
C) creating tax incentives to encourage more consumption.
D) taxing the production or consumption of the good.