A production quota set below the equilibrium quantity creates ...

[Collmarie]

A production quota set below the equilibrium quantity creates
 
  A) a decrease in supply
  B) a decrease in marginal cost
  C) a rise in price
  D) inefficient underproduction
  E) all of the above

Question 2

In one day, Sue can change the oil on 20 cars or change the tires on 20 cars. In one day, Fred can change the oil on 20 cars or change the tires on 10 cars. Sue and Fred can gain from trade if Sue changes the ________ and Fred changes the ________.
 
  A) tires; oil
  B) oil; oil
  C) oil; tires
  D) tires; tires

[deja]

Answer to Question 1

E

Answer to Question 2

A

[Collmarie]

YES! Correct, THANKS for helping me on my review

[AngeliqueG]

Thanks for the timely response, appreciate it