Countries with more economic freedom during 1980-2009 tended to do which of the following?

Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____

a. complements b. substitutes c. inferior goods d. normal goods e. luxury goods

Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 100 pollution permits would be sold, each allowing emission of one unit of pollution. Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit. Under the pollution tax option, firms would be taxed $250 for each unit of pollution emitted. The regulated firms all currently pollute and face varying costs of pollution reduction, though all face increasing marginal costs of pollution reduction. The two policies being considered will result in the same amount of pollution reduction:

A. always. B. only if the equilibrium price in the pollution permit market is $250. C. only if the equilibrium price in the pollution permit market is greater than $250. D. never.