If the supply of oceanfront lots is fixed and perfectly ...

[wenmo]

If the supply of oceanfront lots is fixed and perfectly inelastic,
 a. the demand for the resource determines its price and the level of economic rent
  b. the supply of the resource determines its price and the level of economic rent
  c. the supply of the resource determines its price and the demand for the resource determines the level of economic rent
  d. the demand for the resource determines its price and the supply of the resource determines the level of economic rent
  e. the supply curve is horizontal

Question 2

Coase argued that the free market should be able to solve the externality problem without assigning property rights.
 a. True
  b. False

[ebonylittles]

Answer to Question 1

A

Answer to Question 2

B