Based Figure 4.2, clothing is: A) a normal good. B) an ...

[cagreen833]

Based Figure 4.2, clothing is:
 
  A) a normal good.
  B) an inferior good, but not a Giffen good.
  C) a Giffen good.
  D) none of the above

Question 2

Under a transferable emissions permit system,
 
  A) the firms with the lowest marginal abatement cost curves will reduce emissions most.
  B) the firms with the highest marginal abatement cost curves will reduce emissions most.
  C) the firms with the lowest marginal social cost curves will reduce emissions most.
  D) the firms with the highest marginal social cost curves will reduce emissions most.
  E) all firms will reduce emissions equally.

[bdobbins]

Answer to Question 1

A

Answer to Question 2

A

[cagreen833]

TYSM

[fatboyy09]

Excellent