The figure above shows the market for milk. The ________ price that producers must be offered to get them to produce 250 gallons of milk per day is ________

Many cities in California have severe land-use laws and ordinances, which effectively takeoff the market large amounts of land for residential or commercial construction

If the demand for housing increases in these cities without any increase in the stock of housing or commercial buildings then what is the likely impact that this will have on home prices and commercial structures? How might this affect where corporations choose to locate factories?

Describe the argument that education generates a positive externality. Why might this externality not be relevant in terms of economic efficiency?

What will be an ideal response?