The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the efficient amount of paper will be produced by setting a Pigovian tax of

If two goods are considered complements and the price of one decreases then the other good's

A. supply curve will shift to the left. B. supply curve will shift to the right. C. demand curve will shift to the left. D. demand curve will shift to the right.

Assuming a binding price floor, the more elastic the supply and demand curves are, the:

A. smaller the surplus a price floor will create. B. greater the shortage a price floor will create. C. smaller the shortage a price floor will create. D. greater the surplus a price floor will create.