Joseph decides to join the Big State University's football team when he learns that his health insurance will pay for any subsequent injury. This illustrates

Explain why financial intermediaries are necessary to facilitate the movement of funds from savers to investors and how they provide benefits to both groups

What will be an ideal response?

Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose QD = 1000 - 100P and QS = -100 + 100P. The price consumers would have to pay for the market to achieve the socially optimal level of production is

a. 5 b. 5.5 c. 6 d. 6.5