An auto rental company lowers the price of its rentals to increase its market share. The price cut increases quantity demanded, but total revenue decreases. This result suggests that over this price range, the demand for the auto rentals is:

A market failure in the form of an externality arises when

a. production costs are included in the price of a good b. not all costs and benefits are included in the price of a good c. the benefits of consuming a good exceed the costs d. a market fails to achieve equilibrium e. equilibrium price is unstable

Refer to the data. Assume new product Z is introduced. How many units of Z will this consumer buy, given his or her $12 budget?

Consumer's income = $12
A.  Zero units.
B.  2 units.
C.  4 units.
D.  6 units.