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Question 17-21 refer to the following graph   Suppose the price of pizza decreases to $1. The quantity demanded of pizza increases by how many units?  

Question 5-8 related to the oil market. Let PO be the price of oil and QO be the quantity transacted of oil. Determine which happened to PO  and QO in the following situations. Both the subsidy and earthquake from the previous example both happen.

Costs or benefits that fall on bystanders, not consumers or producers trading in the market are known as:

What does “internalizing an externality” mean?

An example of a private good would be:

What is the purpose of tradable allowances in the area of products that produce externalities?

Why are Pigouvian taxes and subsidies used by governments?

When the government intervenes in markets with external costs, it does so in order to:

Private goods can be provided by competitive markets because they are:

The average person does not like working the night shift.  According to the theory of compensating differentials, how would pay for night-shift workers differ from that of day shift workers?