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Consider a market for something called savings. Demanders are people with money who want savings; suppliers are people who have savings who want money. Call the market price r (the interest rate). Suppose that demanders want savings so that when they retire they will be able to “eat, drink and be merry.” The government comes along with a program that gives people money when they retire (call the program Social Security), thereby enabling them to “eat, drink and be merry” without any savings. As a consequence,  ________.

The outcome in a market where a transactions tax is split, with half collected from suppliers and half collected from demanders.

The outcome in a market for information.

The outcome in a market where a firm has market power and the government bans entry.

The following graph applies to questions 23 through 25. Visual Transcript The graph has price/cost on the x-axis and quantity on the y-axis. The values on the y-axis are $50, $60, $70, $90, and $110. The values on the x-axis are 6, 8, 10, 11, and 12. There is a straight line graph titled MR, which is decreasing and is located before point 8 on the x-axis. There is a curved line that is titled MC and it is also located before point 8 on the x-axis. In addition to this, there is another curved line titled, ATC that is located before point 10 on the x-axis. Lastly, there is a straight line titled D that is increasing in function and only cuts through graphs MC and ATC. To maximize profits or minimize losses, the firm pictured above should ________.

The outcome in a market for a good where the government supports the price by buying up or otherwise idling one or more of the inputs used to produce the good.

The outcome in a market where suppliers who create negative externalities are subsidized.

Margarine is naturally white in color. A long time ago, the Utah State Legislature made it illegal for a manufacturer of margarine to dye its product yellow to resemble the color of butter. This regulation can best be understood as an effort by the legislature to ________.

A firm that processes dead animals into useful byproducts is located on the outskirts of a city. The smell near the plant is awful—it is so bad that people could not locate other businesses or residences nearby because the smell was literally nauseating. From a social point of view, it is likely that ________.

The Wall Street Journal (March 12, 2015, p. B6) reported that Shake Shack, at the time a new entrant into the hamburger market, lost money because of an increase in the price of beef. Shake Shack executives indicated that they wouldn’t increase the price of their hamburgers in response to their higher costs. This suggests that ________. Select all that apply.