Use the Following to Answer Question(s): Efficiency and Pollution

question 109

Multiple Choice

Use the following to answer question(s) : Efficiency and Pollution

-(Exhibit: Efficiency and Pollution) If this market produced _______ units, then _______.

• A) 30; it would be efficient
• B) 30; MB > MC
• C) 45; total cost would equal total benefits
• D) 45; MC = 0

---

Definitions:

Supply Elastic

Relates to how much the quantity supplied of a good changes in response to changes in its price.

Recession

An economic downturn marked by a significant decline in activity across the economy, lasting more than a few months.

Demand Decline

A situation where the desire or willingness of consumers to purchase a particular good or service decreases over time.

Elastic Demand

A situation where the quantity demanded of a product changes significantly when its price changes.