Author Question: As the price of land decreases along its demand curve, the relative price of land a. increases ... (Read 106 times)

natalie2426 · **on:** Jun 30, 2018

As the price of land decreases along its demand curve, the relative price of land
a. increases because the prices of other resources have also decreased
b. decreases because the prices of other resources have also decreased
c. increases because the prices of other resources have increased
d. decreases because the prices of other resources are held constant
e. remains constant because the prices of other resources also increase

Question 2

When the free market produces less than the socially optimal quantity of a good,
a. negative externalities must be present
b. marginal social cost must exceed marginal private cost
c. marginal private benefit must exceed marginal social benefit
d. the government should tax production of the good
e. there has been a market failure