If enforcement is aimed at sellers of an illegal good, its equilibrium price will ________ and its equilibrium quantity will ________.
A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease
Question 2
Which of the following statements is FALSE?
A) A consumer has only one indifference curve.
B) A consumer possesses a preference map.
C) An indifference curve is a curve that shows the combination of goods among which a consumer is indifferent.
D) The marginal rate of substitution is the rate at which a consumer will give up good y to get more of good x and remain on the same indifference curve.
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