The quantity supplied of bagels is 100 at the unit price $1. Suppose the price elasticity of supply by the initial value method is 1.5, and you would like to induce sellers to increase the quantity of bagels supplied to 130. Then the new price for bagels must be:

Beginning from a situation where there were no clear property rights to clean air and water: a. subsidies could not improve efficiency in cases of external benefits

b. subsidies could not improve efficiency in cases of external costs. c. taxes could not improve efficiency in cases of external costs. d. neither external benefits nor external costs could improve efficiency in either the case of external benefits or the case of external costs.

Opening trade between a nation that has "cheap labor" and one that has "expensive labor" will

a. lower the standard of living in both countries. b. raise the standard of living in both countries. c. make some workers less efficient. d. lead to an inappropriate allocation of resources.