(Table: Firm's Willingness) Look at the table Firm's Willingness. If the price of a report is $12, what is the value of producer surplus for the firm?

Taxes levied on a firm's earnings ________ the effective cost of funds

A) lower B) raise C) have no effect D) none of the above

Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?

A. More drivers would drive on the toll road making the non-toll road less congested. B. Traffic would remain evenly divided between the two roads as drivers continuously sought the less-congested route. C. More drivers would drive on the non-toll road, making the toll road less congested. D. Traffic would decrease on both roads.