Suppose that goods X and Y are substitutes and the price of good ...

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Suppose that goods X and Y are substitutes and the price of good Y falls. We would then expect
 
  A) the quantity of good Y demanded to increase and the demand for good X to increase also.
  B) an increase in the demand for good X and a decrease in the quantity of good Y demanded.
  C) an increase in the quantity demanded of good Y and a decrease in the demand for good X.
  D) an increase in the demand for both good X and good Y.

Question 2

An effluent fee is more effective when imposed on
 
  A) the firm or producer of the product which generates pollution.
  B) the consumer of the product.
  C) neither the producer nor the consumer of the product.
  D) the supplier of the raw material used by the firm.

[zhanghao]

Answer to Question 1

C

Answer to Question 2

A

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Gracias!

[frankwu0507]

Excellent