If tea and coffee are substitutes, the cross elasticity of coffee with respect to the price of tea will be ________ and an increase in the price of tea will ________ the demand for coffee

Refer to the figure above. In comparison to the bundles on IC1, the bundles on IC3:

A) give the same level of utility and are affordable. B) give the same level of utility but are not affordable. C) give a higher level of utility and are affordable. D) give a higher level of utility but are not affordable.

When regulators identify with the special interests of the industry they regulate, this behavior conforms with the

A) share-the-gains, share-the-pains hypothesis. B) rate-of-return hypothesis. C) lemon market hypothesis. D) capture hypothesis.