When market activity generates a negative externality, the level of output in the market equilibrium is lower than the socially optimal level

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an

A) excess supply of 8 t-shirts. B) excess supply of 10 t-shirts. C) excess demand of 8 t-shirts. D) excess demand of 10 t-shirts.

Economics

What determines the demand for a nonrenewable natural resource?

What will be an ideal response?

Economics