All else equal, if oil prices increase, annual oil consumption will ________ and the years it will take to deplete the stock of oil will most likely ________

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

A

Economics

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Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas

Using Lisa's utility function, calculate how many burritos she consumes.

Economics

On efficiency grounds, corrective taxes should not be given as compensation to those individuals harmed by negative externalities

a. True b. False

Economics