In the above figure, suppose the economy is in short-run equilibrium at point D. Which of the following is the best policy option for the Fed?

Which of the following might be a method that the government could use to promote the production of a good that generates positive externalities?

A) subsidies B) regulations C) financing additional production D) All of the above are correct.

The economic incentive for price discrimination is based upon:

A. Prejudices of business managers B. Differences among sellers' costs C. A desire to evade antitrust legislation D. Differences among buyers' elasticities of demand