Say a person is willing to substitute 3 units of good 1 for 5 units of good 2 when they are consuming 30 units of good 1 and 50 units of good 2. The market basket they're consuming, with this much good 1 and good 2 in it, costs their entire income. Say when they next go to market, they find that the price of good 1 is $10 and the price of good 2 is $8. All other prices are the same. Would they change how much of the two goods they consume? yes, they would want to consume more good 1 and less good 2 yes, they would want to consume more good 2 and less good 1 O no we can't say from the information given what does "ceteris paribus" mean? all other relevant variables held constant all other relevant variables changing at the same rate in the same direction all other relevant variables changing at the same rate in the opposite direction none of these answers economists argue that having governments provide communities with public goods -- is necessary, because of the free rider problem is necessary in order to have a fair society is necessary if we want the economy to be on its production possibilities frontier is unnecessary because if people are willing to pay for a public good, then privately owned, profit oriented firms will go into the business of providing communities with public goods to everyone's benefit If I get an inoculation against a disease that I can give to someone else through casual contact (just being near them), then me getting that inoculation creates what economists call ------ a negative externality. a positive externality it creates both a positive and externality because it does something good for you and for other people suppose a consumer is consuming some good 1 initially. suppose their income increases, ceteris paribus. then they will want to consume more good 1 than they were consuming. true false we can't say what their reaction would be the particulates (dust) and gases emitted by a steel mill are a positive externality O a negative externality both a positive and negative externality because it does something harmful to those living nearby but something good for the owners of the mill