In the figure above, if no one owns the lake, what is the equilibrium price of the pesticide?

To efficiently improve environmental quality, it is usually

A) better to focus on the hardest areas to clean up first since these usually are the biggest problems. B) more appropriate to concentrate on the physical quantities of pollution rather than on economic costs. C) best to set up stringent emission standards that must be followed by everyone. D) better to focus on economic damages rather than physical quantities of pollution.

The demand for health care in industrially advanced economies is:

A. highly elastic with respect to both price and income. B. highly inelastic with respect to both price and income. C. highly elastic with respect to income but highly inelastic with respect to price. D. about unit elasticity with respect to income and relatively inelastic with respect to price.