Author Question: If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an ... (Read 83 times)

amal · **on:** Jun 29, 2018

If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an effect in the market for the illegal good or service would definitely be

A) an increase in the equilibrium price.
B) a decrease in the equilibrium price.
C) a decrease in the equilibrium quantity.
D) an increase in the equilibrium quantity.

Question 2

Of the choices given below, Jimmy, whose utility of wealth schedule is given above, prefers

A) option A: 300 with certainty.
B) option B: 50 percent chance of 200 and 50 percent chance of 400.
C) option C: 50 percent chance of 200 and 50 percent chance of 700.
D) option D: 90 percent chance of 400 and 10 percent chance of 0.