Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). This is an example of:

________ means the supply curve has shifted to the right, while ________ refers to a movement along a given supply curve in response to an increase in price

A) An increase in supply; an increase in quantity supplied B) A decrease in supply; a decrease in quantity supplied C) A decrease in supply; an increase in supply D) An increase in supply; a decrease in supply

If government decides to produce a collective consumption good, taxes have to be levied to finance the production. In evaluating government provision then, the benefits of public production have to be _____

a. high b. weighed against the excess burden of taxation c. positive d. weighted against the tax incidence on poor families