Question 1 (24 points) Match words and definitions a legally established | v l . . y , maXImum prlce that can be charged for a good or service {~' a good that is nonrival in V consumption and excludable * the price and quantity l v l combination that would exist if there were no externalities ' someone who receives a l v l benefit without paying for 1' Elm) good It 2. price floor refers to who pays a larger l v l share of the tax through 3_ deadweight \"355 higher prices the study of how the 4- free-rider l' v l allocation of resources affects economic well- 5- C0356 theorem being . . ' a legally established 6' price gouging v . . . l mInImum price that can be 7- incidence charged for a good or service 8. black market ~ when a good that is rival l v l in consumption but 9_ price ceiling nonexcludable becomes depleted 10. social optimum ~ the decrease in economic l v l activity caused by market 11' \"'3ng 0f the commons distortions _ _ 12. welfare economics I v ' If there are no barrlers to negotiations. and property rights are fully specified, interested parties will l: l:] a good that is nonriyal in consumption and excludable the price and quantity combination that would exist if there were no externalities someone who receives a benefit without paying for it refers to who pays a larger share of the tax through higher prices the study of how the allocation of resources affects economic well- being a legally established minimum price that can be charged for a good or service when a good that is rival in consumption but nonexcludable becomes depleted the decrease in economic activity caused by market distortions if there are no barriers to negotiations, and property rights are fully specified, interested parties will bargain to correct any externalities charging a price that is higher than normal, usually in times of a natural disaster markets that arise when price controls are in place 10. 11. 12. club good price floor dead-weight loss free-rider Coase theorem price gouging incidence black market price ceiling social optimum tragedy of the commons welfare economics