In Figure 27.2, regulation designed to achieve allocative efficient pricing for the natural monopoly will result in a price of

The more inelastic the schedule, the greater the percentage of the tax that is borne on the other side of the market

a. True b. False

Falling output, in the short run, could be due to:

A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.