When those most likely to produce the outcome insured against are the ones who purchase insurance, insurance companies are said to face the problem of

Which of the following is a plausible reason that restaurants offer "Senior Citizen Discounts"?

A) Senior citizens tend to have relatively more elastic demands for restaurant meals than other consumer groups. B) Senior citizens tend to have relatively more inelastic demands for restaurant meals. than other consumer groups. C) Senior citizens are not very sensitive to changes in prices. D) Senior citizens are easily fooled by "come-ons" and are therefore frequently victims of price discrimination.

Effluent taxes are not the most common approach used to control pollutants in the United States

a. True b. False Indicate whether the statement is true or false