Farmer owens has an apple orchard that must be pollinated by bees in order to bear fruit. farmer owens's neighbor, maude, owns beehives with bees that can pollinate the apple trees. suppose the benefit of the bees to farmer owens is $5,000 per year. suppose the bees provide no benefit to maude but she must pay $3,000 per year to maintain the hives. if farmer owens and maude engage in coasebargaining, what would likely result?

a. farmer owens would pay maude between $3,000 and $5,000 to maintain the hives.

b. maude would pay farmer owens between $3,000 and $5,000 to maintain the hives.

c. farmer owens would pay maude between $0 and $5,000 to maintain the hives.

d. farmer owens would pay maude at least $5,000 to maintain the hives.

e. farmer owens would not be willing to pay maude an amount such that she would maintain the hives.

Richardson hired j. c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j. c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise

When a shortage or a surplus arises in the loanable funds market a. the supply of loanable funds changes to return the economy to its original real interest rate b. the nominal interest rate is pulled to the new equilibrium level c. the demand for loanable funds changes to return the economy to its original real interest rate d. the real interest rate is pulled to the new equilibrium level