If economists estimate the price elasticity of demand to be 0.75 for good X and 1.25 for good Y, then the government can raise the most revenue by taxing good Y

The ways to address agency costs include all EXCEPT

a. running background checks on prospective employees b. requiring employees to punch time clocks c. instituting longer work days d. replacing closed offices with cubical office spaces

The production of methamphetamine (meth) is a social problem in the Midwest. Iowa is considering two potential programs: Operation Methbust would increase the number of sheriffs' deputies to search out and destroy methamphetamine labs. Operation Say No to Meth would increase the training required of public school teachers so that they could better educate students about the health risks of using meth. Assuming that each program were successful, which of the following statements is correct?

a. Both Operation Methbust and Say No would reduce the equilibrium quantity and increase the equilibrium price of meth. b. Both Operation Methbust and Say No would increase the equilibrium quantity and reduce the equilibrium price of meth. c. Both Operation Methbust and Say No would reduce the equilibrium quantity of meth; Operation Methbust would increase the equilibrium price, whereas Say No would reduce the equilibrium price of meth. d. Both Operation Methbust and Say No would reduce the equilibrium price of meth; Operation Methbust would reduce the equilibrium quantity, whereas Say No would increase the equilibrium quantity of meth.