15. According to the Cease Theorem: 3. b. C. d. c. it is possible for markets to achieve equilibrium without involvement when negative extemalities occur. If transactions costs are low enough, common property can be converted to private property and markets can be created without government. Say's Law, when aided by subsidies, can reduce pollution, excessive noise, and other common property problems. The invisible hand only works when there is symmetrical information and high transaction costs. A and B only some sort of government 16. There is currently a of fresh water in Florida. This is because the government USES a. b. c. d. e. in this market. Therefore, higher prices would Surplus; price ceilings; lead to a drop in demand Surplus; price oors; not impact demand Shortage; price ceilings; lead to a more efcient quantity demanded. Shortage; price oors; increase in quantity supplied. None of the above