If the substitution effect of a lowered price is partly or fully offset by the income effect, we know that the good in question is a(n)

The negative impact of the loss of value of collateralized assets is due to

A) asymmetric information. B) Ricardian Equivalence. C) limited commitment. D) financial intermediation through banks.

The optimal level of air quality will increase if

a. the cost of polluting increases b. pollution is found to be self-absorbing c. a new process allows pollution to be removed more cheaply d. the marginal social cost of air quality increases e. the marginal social benefit of air quality decreases