Refer to the supply and demand graph below. S1 and D1 represent the current market supply and demand, respectively. S2 and D2 represent the socially optimal supply and demand. One way that the government could shift demand to its socially optimal level

Let "C = Ca + by" define the consumption function. The term "by" is

A) the marginal propensity to consume. B) autonomous consumption. C) current income. D) consumption that depends on income.

What is meant by the "law of one price"?

A) A law was passed in 1913 that made it illegal to sell the same good or service to different people for different prices. B) This is a section of the Sherman Act that forced trusts (for example, the Standard Oil Company) to charge the same price for the same good or service in different states. C) Foreign companies should not be allowed to sell a product in the United States for prices different from prices these companies charge in other countries. D) Identical products should sell for the same price everywhere.