When Tom's income increases, his demand curve for Mountain Dew shifts rightward because the higher income increases his marginal utility of Mountain Dew

Health insurance companies impose deductibles on policies and co-payments on claims

A) to reduce moral hazard problems. B) to increase prices. C) to increase sales. D) to reduces sunk costs.

Markets will tends to produce too little of activities that generate positive externalities

a. True b. False