Recall the Application. The rise in commodity prices corresponded with ________ in interest rates, and this change in interest rates would result in bond prices ________

The market process will likely fail to fully coordinate supply and demand if transaction costs are

A) non-existent. B) significant. C) locally perverse. D) inconsequential.

The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year

With the quota in place, the amount of cotton produced in Georgestan is ________ because the marginal social cost of a pound of cotton is ________ the marginal social benefit of a pound of cotton. A) inefficient; less than B) inefficient; greater than C) efficient; less than D) efficient; equal to