If the government's provision of a subsidy is too small to counteract the entire effect of a positive externality, the:
A. quantity consumed will still be too low.
B. quantity consumed will still be too high.
C. total surplus will be maximized, but the outcome will be inefficient.
D. total surplus will not be maximized, but the outcome will be efficient.
A. quantity consumed will still be too low.
Economics
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The graph shows the market for ski chalets in Aspen. If a rent ceiling is set at $1,900 a week, then the maximum amount charged in the black market is ________ a week
A) $1,900 B) $2,050 C) $2,125 D) $225 E) $150
Economics
The tax incidence of a specific tax or ad valorem tax is influenced by
A) who pays the tax. B) the amount of the tax. C) the price elasticities of supply and demand. D) All of the above.
Economics