If the demand for a product increases and the supply of the same product decreases, the equilibrium price will increase

When majority rule voting is used to determine whether to purchase a public good,

A) the efficient outcome is assured. B) the median voter gets her way. C) the sum of the marginal benefits must equal marginal cost. D) the marginal benefit of the good to the median voter equals the good's marginal cost.

A firm that generates pollution is illustrated in Figure 9.7. The government has chosen to impose a pollution tax equal to P2. From the firm's point of view, the marginal benefit of abatement is:

A. avoiding the pollution tax imposed by the government. B. the positive publicity the firm will receive by having a "green" production plant. C. the reciprocal of the marginal cost of abatement. D. zero because abatement benefits the general public, not the firm.