Consider a regulated natural monopoly. If the regulatory commission wants to establish a fair-return price, then it should set a price ceiling where the demand curve crosses the monopoly's long-run:

The deflation of the 1930s impacted the U.S. economy because it led some consumers to ________ and because it ________

A) demand higher wages in anticipation of prices eventually rising again; increased manufacturing since firms could afford to hire more labor B) increase purchases to take advantage of the falling prices; increased the burden on lenders C) postpone purchases while they waited for prices to fall even lower; increased the burden on borrowers D) borrow more money since money was now cheap; reduced the amount of money consumers would have to pay back on their outstanding loans

The idea that people will not consciously make decisions that make them worse off is known as

A) rationality assumption. B) the decision duality. C) Adam Smith's doctrine. D) incentive assumption.