In the above figure, the monopsonist will employ

What is the main rationale economists provide for assigning government the responsibility of protecting people against foreign aggressors?

A) It would be too dangerous to allow citizens to keep and bear arms for the purpose of forming militias to defend their communities. B) Most people are patriotic only when the government is involved. C) "National defense" must by necessity be nationalized. D) People will not risk their lives unless government requires them to do so. E) Private providers could not exclude non-payers from the benefits.

If a good is considered to be a luxury good, does it mean that the law of demand does not hold?

What will be an ideal response?