Table 9.2 represents 3 markets for used guitars. Which of the markets in Table 14.2 are in equilibrium?

When prices drop in response to a decline in demand for an increasing cost industry:

a. producer surplus will increase but rents may decrease. b. rent earned by elastically supplied inputs will decline by more than rent earned by inelastically supplied inputs. c. rent earned by elastically supplied inputs will decline by less than rent earned by inelastically supplied inputs. d. both producer surplus and rents will increase.

An efficient tax system is one that imposes small deadweight losses and small administrative burdens

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