Efficient markets could not result in a real-world outcome such as that evidenced by the prevalence of international poverty in LDCs

A black market

A) is legal only when it is associated with government price ceilings. B) is defined as the deadweight loss associated with taxes. C) benefits no one. D) is a potential outcome of a price ceiling. E) is always legal.

When the price of a normal good rises, the income effect results in ________ in the quantity demanded and the substitution effect results in ________ in the quantity demanded

A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease