In the above figure, at the equilibrium level of real GDP, there is

Which of the following is true?

i. The easier it is to find substitutes for a good, the more price elastic the demand for the good is. ii. The demand for a good is more price elastic the smaller the proportion of income spent on it. iii. If demand is price elastic, lowering the price leads to a decrease in total revenue. A) only i B) only ii C) only iii D) i and ii E) i and iii

Changing the price of a good will usually result in a negative externality

Indicate whether the statement is true or false