A shortage occurs at any price above the equilibrium price.

Stocks and bonds:

a. Are both components of gross private domestic investment. b. Are not a part of gross private domestic investment, because to include them would be double counting a nation's assets and liabilities. c. Are not a part of gross private domestic investment, because to include them would be double counting a nation's personal consumption and investment. d. Are not a part of gross private domestic investment, because they are a part of financial services, which are a separate component of GDP. e. None of the above.

A common feature of regulated industries is cross-subsidization, which is a situation when one group of customers pays prices above costs while another group of customers pays prices below costs. The one group is subsidizing the other group. Is this

practice more consistent with the capture hypothesis or the share-the-gains, share-the-pains theory? Explain. What will be an ideal response?