Author Question: If the penalty on sellers of an illegal good is less than the penalty on buyers of an illegal good, ... (Read 52 times)

beccaep · **on:** Jun 29, 2018

If the penalty on sellers of an illegal good is less than the penalty on buyers of an illegal good, then supply of the good will ________ by ________ demand and the price of the good will ________.

A) increase; more than; increase
B) decrease; more than; decrease
C) decrease; less than; decrease
D) decrease; the same amount as; remain the same

Question 2

In the above figure, the slope at point b

A) lies between 1/3 and 1.
B) equals 1.
C) lies between 1 and 2.
D) exceeds 2.