Pollution is caused by a market failure, in an industry in which ...

[fagboi]

Pollution is caused by a market failure, in an industry in which there is
 
  A) unemployment.
  B) an over-allocation of resources in production.
  C) excess demand.
  D) excessive cost borne by the firm.

Question 2

Chocolate has just been found to increase your expected life span by 5 years if you eat it every day. In the market for chocolate, this information will lead to
 
  A) an increase in price and a decrease in quantity.
  B) an increase in price and an increase in quantity.
  C) a decrease in price and a decrease in quantity.
  D) a decrease in price and an increase in quantity.

[ebenov]

Answer to Question 1

B

Answer to Question 2

B

[fagboi]

Thank you

[ebenov]

Happy to help you