New York University ECON-SHU ECON-SHU COR1-GB.13 (c)Assume a factory is polluting the air in a town.Other than using a tax, the only efficient solution other is to assign property rights (e. the…
(e) Let’s assume price elasticity of demand for pizza is -3.0, then a 10 percent increase in price results in a decrease of 30% percent decrease in the quantity demanded.___________(True/False)
(f) If pollution creates a negative externality, social welfare is maximized when all the pollution is eliminated.___________(True/False)
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