Consider the data in Table 9.6. If each firm is currently generating 100 gallons of wastewater per day, Firm B would be willing to pay up to ________ to Firm A to be able to generate 200 gallons of wastewater per day.

If enforcement is aimed at sellers of an illegal good, its equilibrium price will ________ and its equilibrium quantity will ________

A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease

The policy ineffectiveness proposition of the new classical model suggests that ________

A) unanticipated policy has no effect on the business cycle B) anticipated policy can have an effect on the business cycle C) anticipated policy has no effect on the business cycle D) legislative policy initiatives have little effect if the executive branch of government is in the hands of another political party