Experience rating systems for pricing insurance discourage firms from spending money to try to improve their employees' health.

What happens when the price decreases in the case of a product that has elastic supply?

(A) Existing producers expand, and new producers enter the market. (B) Some producers produce less, and others drop out of the market. (C) New firms enter the market as older ones drop out. (D) Existing firms continue their usual output, but they earn less.

In Munn v. Illinois (1877), the Supreme Court held that:

a. state laws limiting prices charged by grain elevators were a violation of the Fifth Amendment. b. grain elevator and freight prices could only be regulated by the federal government. c. states have a right to regulate businesses within the state that are "clothed with a public interest.". d. organizations like the Grangers violated federal conspiracy laws.