If buyers of illegal goods are punished but sellers are not, then the price ________ and the equilibrium quantity ________

If there is pollution in producing a product, then the market equilibrium price is too high and equilibrium quantity is too low

Indicate whether the statement is true or false

The Second Theorem of Welfare Economics states that:

a. all Walrasian equilibria are also social welfare maxima. b. social welfare maxima will usually be Pareto inefficient. c. any social welfare maximum can be a Walrasian equilibrium with suitable transfers of initial endowments. d. all Pareto optimal allocations are social welfare maxima.