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Author Question: One way of addressing the associated market failure that generates both private costs and external ... (Read 88 times)

Mollykgkg

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  • Posts: 529
on: Jun 29, 2018
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

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  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

C


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