Suppose a tax equal to the value of the marginal external cost at the optimal output is imposed on a pollution generating good. All of the following will result from the tax except
A) an increase in demand for the good.
B) a decrease in the equilibrium quantity produced and consumed.
C) an increase in the equilibrium market price.
D) a decrease in market supply of the good.
A
Economics
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Empirical evidence regarding the effects of devaluation on the balance of trade indicates that
A) devaluation generally improves the BOT. B) devaluation generally hurts the BOT. C) no strong generalizations are possible. D) devaluation has no effect on the BOT.
Economics
"The market has failed to provide enough rental housing in New York City. This demonstrates another failure of free markets-they may lead to shortages of necessities." Explain why you agree or disagree
Economics