Author Question: If the demand for a good were completely inelastic, A) the good is a basic necessity. B) the ... (Read 113 times)

futuristic

  • Hero Member
  • *****
  • Posts: 638
If the demand for a good were completely inelastic,
 
  A) the good is a basic necessity.
  B) the good is a luxury.
  C) there are no substitutes for the good.
  D) there had been a long period of time for people to adjust their behavior.
  E) people who own the good currently do not want to give it up except at much higher prices.

Question 2

If the production of a good causes an external cost, then the efficient quantity is
 
  A) equal to the quantity at which the marginal benefit equals marginal cost.
  B) less than the quantity at which the marginal benefit equals the marginal cost.
  C) more than the quantity at which the marginal benefit equals the marginal cost.
  D) the quantity at which the marginal private benefit is greater than the marginal social benefit.
  E) None of the above answers is correct.


fur

  • Sr. Member
  • ****
  • Posts: 309
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

For a complete list of videos, visit our video library