Refer to the information provided in Figure 3.14 below to answer the question(s) that follow. Figure 3.14Refer to Figure 3.14. The market for sunglasses is in equilibrium at a price of ________ and a quantity of ________ sunglasses.

Sunny’s Spa knows that a 5 percent increase in the price of their massages results in a 15 percent decrease in the number of massages purchased. What is the elasticity of demand facing Sunny’s Spa?

The marginal social benefit from the production of the last unit of a good is $4,875. If the willingness to pay for that unit is $4,250, what is the external benefit from its production?

A positive externality results when

How does behavioral economics explain market bubbles and crashes?

__________________ include both the private costs incurred by firms and also costs incurred by third parties outside the production process.

Diminishing marginal utility means that

What is a key disadvantage of command-and-control regulation related to firm behavior after meeting standards?

The figure above shows a firm operating in a monopolistically competitive market. To maximize profit, the firm produces

When economies of scale for a market are large relative to the quantity demanded in the market, a ____________ exists.