The country of Elbia has a GDP of $2,000 . consumption of $1,300, and government purchases of $400 . Which of the following is equal to $300?

Which of the following situations will arise in the domestic market following the imposition of an import ban?

A) imports decrease, domestic production increases, prices increase B) imports increase, domestic production increases, prices increase C) imports increase, domestic production decreases, prices decrease D) imports decrease, domestic production increases, prices decrease

Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. From this figure we know that

A) an external benefit exists. B) private costs are less than social costs. C) private costs equal social costs. D) private costs are greater than social costs.