Production of good X imposes costs on people who are neither producers nor consumers of good X. A senator proposes a per unit sales tax on good X. Explain how this tax will affect each of the following. The price paid by consumers The quantity of good X produced The total after-tax revenues received by producers of good X. Explain how imposing this tax might result in greater economic efficiency than would be achieved in an unregulated competitive market.

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d