Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. What is the expected revenue from setting the price at $70?

Ceteris paribus, as real GDP expected growth ________, investment spending ________

A) increases; decreases B) increases; increases C) decreases; increases D) changes; does not usually change

Which of the following correctly identifies a problem with price regulation?

A) It minimizes social surplus. B) It minimizes consumer surplus. C) Sellers do not have an incentive to cut costs. D) Government intervention increases deadweight loss.