One way of addressing the associated market failure that ...

[Mollykgkg]

One way of addressing the associated market failure that generates both private costs and external costs is for this activity to be
 
  A) left alone.
  B) taxed.
  C) subsidized.
  D) banned.

Question 2

Refer to the above figure. The arrows show the direction of a shift in the demand curve of Good A. Which of the following would be the most likely reason for the shift in the demand curve if Good A is an inferior good?
 
  A) an increase in the price of Good A
  B) a decrease in the price of Good A
  C) a decrease in consumers' income
  D) an increase in consumers' income

[todom5090]

Answer to Question 1

B

Answer to Question 2

C