Due to externalities generated by home landscaping, its price
A) is above the optimal level, and quantity that is below the optimal level.
B) is below the optimal level, and quantity that is above the optimal level.
C) and quantity traded are both above the optimal level.
D) and quantity traded are both below the optimal level.
E) must fall in order for the market to reach equilibrium.
D
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The figure above illustrates a linear demand curve. In the range from $8 to $6
A) the demand is price elastic. B) the demand is unit elastic. C) the demand is price inelastic. D) more information is needed to determine if the demand is price elastic, unit elastic, or inelastic.
From the four asset bubbles discussed in this chapter, the one that has the smallest impact on the economy is
A) the 1927-29 U.S. stock market bubble. B) the 1987-89 Japanese stock market bubble. C) the 1996-2000 U.S. stock market bubble. D) the 2001-2006 U.S. housing bubble.