A market where goods are sold in violation of governmentally-imposed restrictions is a(n)

A(n) ________ in U.S. prices will cause a decrease in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

A student wrote: "A production quota is inefficient because it results in overproduction

At the quota quantity, marginal social cost is equal to the market price and marginal social benefit is less than the market price, so marginal social cost exceeds marginal social benefit." If you were the instructor, how would you correct this statement?