Choose the statement about itqs that is correct. a. fishers with low marginal cost sell itqs to those with high marginal cost. b. when itqs are used, no one has an incentive to cheat and exceed the quota. c. the major problem with itqs is that they create a monopoly. d. the market price of a an itq equals the marginal social benefit minus the marginal social cost.

Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?