The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.

What is the crowding-out effect and how does it operate? What is its relationship to the Ricardo-Barro effect?

What will be an ideal response?

A demand curve shows the relationship between:

a. price and quantity demanded. b. the demand and supply schedules. c. demand and supply equilibrium. d. leakages and injections. e. price and technology.