QUESTION 5 A perfectly inelastic supply curve is: O 1. upward sloping to the right! O 2. downward sloping to the left O 3. horizontal O 4. vertical 5. none of the above Show Transcribed Text * Question Completion Status: The area between the market price and the supply curve provides a meas O 1. consumer surplus. O 2. producer surplus, O 3. consumer surplus plus producer surplus. 4. marginal utility. O 5. the deadweight loss arising from free trade. QUESTION 9 Which of the following provides an example of an externality O 1. the air pollution generated when you drive your car 2. the view that passers-by and neighbours enjoy when observing your 3. the free concerts neighbours hear when an 4. all of the above QUESTION 10 Suppose that firms In the chemical industry are allowed p harmful products into rivers. If this is the case in a competitive market, how will the price and output of the che fall products compare with their values under conditions of ideal economic efficiency? 1. Price is too low, output is too large O 2. Price is too high, output is too large 3. Price is too low output is too small () 4. Price is too high: output is too small