Which of the following would be the most likely candidate for direct application of the benefits principle of taxation?

Which of the following explains why supply is more elastic as more time passes?

A) It is difficult or impossible to increase the quantity produced in a short period of time. B) Consumers have more time to search for substitutes. C) Sellers try to take advantage of a high price in the short term. D) The supply curve becomes generally steeper as more time passes. E) There is no explanation for this phenomenon.

The existence of positive externalities indicates that price is too low

Indicate whether the statement is true or false